ACCO Brands: This Diverse Consumer Brands Name Remains On Sale

2025-02-11 14:07:18 ET

Summary

• ACCO Brands Corporation is a cheap stock with potential despite declining revenue and a 5.5% drop since my August 2024 “Buy” recommendation.
• The firm is cutting costs and reducing debt, and analysts expect improved earnings, making it a strong candidate for future outperformance.
• ACCO's diverse product range and market leadership in key segments add to its attractiveness despite challenges like digitalization and remote work trends.
• Management's cost-cutting and debt reduction initiatives combined with share buybacks support my continued “Buy” rating for ACCO Brands.

As a value investor, I am continually looking for cheap prospects to buy into. One of the cheapest companies I have come across recently is none other than ACCO Brands Corporation ( ACCO ), a diversified provider of consumer, technology, and branded business products. The fact of the matter is that shares are trading in the mid-to-low single-digit range from a valuation perspective. However, in almost every instance, shares that trade this cheap tend to have some sort of issue. That is the case here. Revenue, for instance, has been falling. And as a result, the stock has been punished. Since I last reaffirmed the company as a “buy” candidate back in August 2024, the stock is down 5.5% at a time when the S&P 500 (SP500) is up 7.5%....

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