Newell Brands (NWL) stock is soaring 7.14% in Monday's intraday trading session, rebounding strongly after RBC Capital Markets analysts suggested that the recent stock sell-off following the company's weak Q2 performance and downbeat full-year earnings guidance seemed "harsh".

The consumer goods company reported on Friday that its net sales for the quarter ended June 30 were $1.94 billion, reflecting a core sales decline of 4.4%. Newell Brands also lowered its 2025 normalized EPS guidance to between $0.66 and $0.70, down from a previous range of $0.70 to $0.76, citing costs associated with a short-lived 125% tariff imposed on China by the US government.

RBC Capital Markets, while maintaining a sector perform rating and an $8 price target on the stock, noted that the sell-off following the guidance announcement was excessive. The analysts emphasized that the tariff-related costs are a one-time event, suggesting that the market's reaction may have been overblown. This perspective appears to be resonating with investors, driving the significant rebound in Newell Brands' stock price during Monday's trading session.