Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, October 14, 2016

Article Excerpt

NEWELL BRANDS INC., $52.25, New York symbol NWL, makes a variety of household goods such as pens, coffee makers and baby strollers. It took its current form through the merger of Newell Rubbermaid and Jarden Corp. on April 15, 2016. Newell shareholders now own 55% of the combined firm. This week, the company agreed to sell its tool businesses to STANLEY BLACK & DECKER INC., $121.23 (New York symbol SWK). Those operations make a variety of hand tools and accessories under the Irwin, Lenox and Hilmor brands. In all, they have annual sales of $760 million. To put that in context, Newell’s revenue for the first half of 2016 was $5.2 billion. Stanley will pay $1.95 billion when it completes the purchase in the first half of 2017. In 2015, Stanley earned $903.8 million, or $5.92 a share. The operations it acquires from Newell will add $0.15 a share to its earnings in the first year, rising to $0.50 by the third year…