Investors seem to be under the mistaken conclusion that this is a safe value stock since it sells durable consumer goods, but that does not appear to be the case. NWL is a dangerous, overvalued stock that investors should avoid.
All of the small cap styles earn our Dangerous rating, but Small Cap Blend Investors land in the Danger Zone due to the disproportionately large allocation to the worst funds in the style.
MSFT currently earns our Neutral rating, but if new CEO Satya Nadella can halt the company’s declining return on invested capital (ROIC), the stock’s valuation is cheap enough to make it intriguing.