Back to top

Image: Bigstock

Stanley Black & Decker (SWK) Stock Sinks As Market Gains: What You Should Know

Read MoreHide Full Article

Stanley Black & Decker (SWK - Free Report) closed the most recent trading day at $74.63, moving -0.21% from the previous trading session. This change lagged the S&P 500's daily gain of 0.1%. Meanwhile, the Dow gained 0.28%, and the Nasdaq, a tech-heavy index, lost 0.06%.

Heading into today, shares of the tool company had lost 7.39% over the past month, lagging the Industrial Products sector's loss of 2.74% and the S&P 500's loss of 3.6% in that time.

Stanley Black & Decker will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.26, down 112.15% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.92 billion, down 3.67% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.44 per share and revenue of $16.88 billion, which would represent changes of -57.63% and +0.33%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Stanley Black & Decker. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Stanley Black & Decker is currently a Zacks Rank #5 (Strong Sell).

Investors should also note Stanley Black & Decker's current valuation metrics, including its Forward P/E ratio of 16.84. Its industry sports an average Forward P/E of 17.1, so we one might conclude that Stanley Black & Decker is trading at a discount comparatively.

It is also worth noting that SWK currently has a PEG ratio of 1.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Manufacturing - Tools & Related Products was holding an average PEG ratio of 2.53 at yesterday's closing price.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 239, putting it in the bottom 6% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report FREE:

Stanley Black & Decker, Inc. (SWK) - free report >>

Published in