A portfolio of strong and recognizable names can carry a business a long way. Does that mean Spectrum Brands stock (NYSE: SPB) is a buy in 2023?
Spectrum Brands is a global consumer products company. It produces and markets a wide range of products across several categories, including home and garden, pet supplies, personal care, automotive and hardware.
But what does the future hold for Spectrum Brands?
Let’s take a look at its business. And then we’ll analyze Spectrum Brands stock through the lens of our Stock Power Ratings system.
Spectrum Brands History and Business Overview
Spectrum Brands is a company that began from humble roots in 1923, when businessmen Raymond and Samuel Maxwell purchased the rights to the American Irons Company.
The brothers initially sold items such as small lights, radios and irons, but soon diversified their product range to include kitchen appliances, shavers, power tools and other consumer electronics.
In 1957, the Maxwells reorganized their business as an independent public company called Spectrum Brands which evolved into a multi-national powerhouse in the consumer goods industry.
Today, Spectrum Brands manufactures and markets some of the most popular home and garden products in the world.
Spectrum Brands currently operates in more than 80 countries around the globe and employs more than 8,000 people worldwide.
The company’s products are sold through retailers, distributors, e-commerce platforms and direct-to-consumer channels.
Its portfolio contains a wide range of popular brands such as George Foreman Grills, Remington, Rayovac, Black & Decker and more.
But Spectrum Brands stock is not in a great spot today.
Let’s see why using our proprietary Stock Power Ratings system.
SPB Stock Power Ratings
Spectrum stock rates a “High-Risk” 4 out of 100. That means our system expects the stock to underperform the broader market over the next 12 months!
SPB’s Stock Power Ratings in January 2023.
SPB’s growth tanked during 2020 and the COVID-19 pandemic. Its total revenue for the year decreased a massive 31% compared to the prior year.
It has recovered a bit over the last two years, with a 14.3% growth rate in 2021, and an additional 4.4% of growth in 2022. But its still well off its 2019 numbers.
- 2019: It amassed $3.8 billion in total revenue.
- 2022: It brought in $3.1 billion.
That’s why Spectrum Brands stock scores a lowly 15 out of 100 on our growth factor.
When a company isn’t growing, investors tend to dump the stock.
That’s what happened with SPB over the last year. The stock lost more than 25% of its value since February 2022!
When stocks turn like this, the momentum factors takes a nosedive. It’s only at 17 now!
Bottom Line: SPB has a rich history and a portfolio that’s stacked with some of the most recognizable brands around the world.
But that’s not enough for Spectrum Brands stock right now, according to our Stock Power Ratings system.
It rates as “High-Risk” as is set to underperform the broader market over the next 12 months.
Do you own SPB, or did you sell it during the bear market? Leave a comment below and let us know why you are buying, selling or holding Spectrum Brands stock as 2023 rolls on.