This apart, the company has concluded divestitures of Process Solutions and Rexair businesses for total after-tax sales proceeds of about 5 billion.
You can see the complete list of today’s Zacks #1 Rank stocks here. MED delivered average positive earnings surprise of 9.1% in the trailing four quarters and has a Zacks Rank #2 (Buy). CHEF has a long-term earnings growth rate of 15% and a Zacks Rank #2. Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021.
The execution of the Transformation Plan will lead to simplification of the company’s operations, which is likely to cut its number of manufacturing facilities by 66%, distribution centers by 55%, brands by 45%, number of employees by 39% as well as reduce above 30 ERP systems to two by the end of 2019.
Management will also focus on right-sizing the cost structure for anticipated smaller net sales, remove stranded corporate expenses and recover the synergies lost through the divestitures.
Divestitures of underperforming and non-core assets are expected to reshape this Zacks Rank #3 (Hold) company’s portfolio and improve operational efficiency." data-reactid="11"Newell Brands Inc.
Juvenile Delinquency Thesis - Business Transformation Plan
NWL is smoothly progressing with the Accelerated Transformation Plan as is evident from some of its recent divestitures.The plan is expected to create value and transform the company into a simpler, faster and stronger consumer-focused portfolio of leading brands.In doing so, the company plans to utilize billion after-tax proceeds from divestitures and free cash flow to lower debt and make share repurchase as well as retain its investment grade rating and an annual dividend of 92 cents per share through 2019, targeting 30-35% payout ratio.Divestitures of underperforming and non-core assets are expected to reshape this Zacks Rank #3 (Hold) company’s portfolio and improve operational efficiency.Price Performance In the past three months, shares of Newell have lost 4.4% against the industry’s 6% growth.3 Stocks to Watch Celsius Holdings, Inc.The Dallas-headquartered company – owner of brands such as Tuscan, Dairy Pure and Tru Moo – has started the review to enhance shareholder value and accelerate its “business transformation”.It has not set a timetable for the conclusion of the review, nor has it made any decisions related to any potential strategic alternatives at this time, adding that “there can be no assurance that the strategic exploration review will result in a transaction or other strategic change or outcome”. NWL is smoothly progressing with the Accelerated Transformation Plan as is evident from some of its recent divestitures.This particular plan aims at offloading non-core businesses, which account for nearly 35% of total sales.In 2018, Newell generated more than billion of after-tax proceeds from divestitures.It also remains on track to improve leverage by allocating divestiture proceeds to pay down debt besides making share repurchases.