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    Spectrum Brands (SPB): Assessing Valuation After a Recent 8% Rebound in the Share Price

    Simply Wall St·12/16/2025 01:29:07
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    Recent move in Spectrum Brands Holdings stock

    Spectrum Brands Holdings (SPB) has quietly climbed about 8% over the past week and 16% in the past 3 months, even though the share price is still down sharply year to date.

    See our latest analysis for Spectrum Brands Holdings.

    That recent 8% 7 day share price return and 16% 3 month share price return look more like a relief rally than a full trend change, given the year to date share price return is still deeply negative and the longer term total shareholder returns are mixed.

    If this kind of rebound has you wondering what else might be setting up for a move, now is a good time to explore fast growing stocks with high insider ownership.

    With SPB still down sharply this year despite improving earnings and a sizeable gap to analyst price targets, the key question now is whether investors are looking at an undervalued recovery story or a stock that already reflects future growth.

    Most Popular Narrative: 18% Undervalued

    With the narrative fair value sitting well above Spectrum Brands Holdings last close of $61.58, the story centers on a steady, margin led earnings build rather than breakneck growth.

    Successful execution of cost reduction initiatives over $50M in annual savings and ongoing supply chain diversification are expected to structurally improve EBITDA margins and net income over the medium term. Strategic capital allocation, including disciplined M&A to expand core Pet and Home & Garden portfolios and consistent opportunistic share repurchases, should enhance earnings per share and shareholder value as operational volatility wanes.

    Read the complete narrative.

    Want to see how modest top line assumptions still support a higher valuation? The narrative leans on expanding margins, shrinking share count, and a future earnings multiple more typical of sector leaders. Curious which specific profit and valuation targets need to line up for this discount to close?

    Result: Fair Value of $75.14 (UNDERVALUED)

    Have a read of the narrative in full and understand what's behind the forecasts.

    However, this thesis still faces pressure from heavy reliance on Asian sourcing and persistent retail competition, which could squeeze margins and derail those margin-led gains.

    Find out about the key risks to this Spectrum Brands Holdings narrative.

    Build Your Own Spectrum Brands Holdings Narrative

    If you draw different conclusions from the same numbers and would rather test your own assumptions, you can build a custom view in minutes: Do it your way.

    A great starting point for your Spectrum Brands Holdings research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision.

    Looking for more investment ideas?

    Before you move on, lock in a stronger watchlist by scanning fresh opportunities that match your style, instead of waiting for the next headline move.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.