We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Stanley Black Provides Strategic Update at Investor Day
Read MoreHide Full Article
Stanley Black & Decker, Inc. (SWK - Free Report) has provided a strategic update at its recently held Investor Day. It also reaffirmed guidance for 2019.
As part of its strategic update, Stanley Black & Decker aims to strengthen its diversified industrial business, and provided long-term financial targets. By 2022, the company aims to grow its total revenues roughly by 10−12% (CAGR), including organic sales growth of 4−6%. On a segmental basis, Industrial revenues will likely comprise 15−20%, Tools & Storage revenues with 50−60%, Lawn & Garden with 15-20% and Security revenues with 10% of total revenues.
Earnings per share are predicted to grow 10−12% or roughly 7−9% excluding acquisitions. Cash flow return on investments will be 12−15% while free cash flow will be greater than or equal to net income. In the years ahead, the company wishes to follow its 50/50 capital allocation strategy of acquisitions and reward shareholders.
In addition, the company has reaffirmed its guidance for 2019. Earnings are anticipated to be in a $8.50-$8.70 per share range. In addition, free cash flow conversion is predicted to be 85-90%.
Our Take
Stanley Black & Decker’s market expansion strategies are expected to be key growth drivers, going forward. In this regard, brands like Newell Tools have been strengthening the company’s tools business through deeper penetration into markets worldwide. In addition, the buyout of industrial business of Nelson Fastener Systems (April 2018) has been strengthening its Engineered Fastening business, and will be accretive to earnings.
Over the past six months, the Zacks Rank #3 (Hold) company has yielded a return of 7.3%, outperforming 2.1% growth recorded by the industry.
However, the company is currently dealing with adverse impact of rising cost of sales, primarily due to commodity inflation, unfavorable impact of foreign currency movements and tariffs.
Harsco exceeded estimates in each of the preceding four quarters, the average positive earnings surprise being 11.40%.
Dover surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 8.61%.
Actuant exceeded estimates in each of the preceding four quarters, the average positive earnings surprise being 11.01%.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Image: Bigstock
Stanley Black Provides Strategic Update at Investor Day
Stanley Black & Decker, Inc. (SWK - Free Report) has provided a strategic update at its recently held Investor Day. It also reaffirmed guidance for 2019.
As part of its strategic update, Stanley Black & Decker aims to strengthen its diversified industrial business, and provided long-term financial targets. By 2022, the company aims to grow its total revenues roughly by 10−12% (CAGR), including organic sales growth of 4−6%. On a segmental basis, Industrial revenues will likely comprise 15−20%, Tools & Storage revenues with 50−60%, Lawn & Garden with 15-20% and Security revenues with 10% of total revenues.
Earnings per share are predicted to grow 10−12% or roughly 7−9% excluding acquisitions. Cash flow return on investments will be 12−15% while free cash flow will be greater than or equal to net income. In the years ahead, the company wishes to follow its 50/50 capital allocation strategy of acquisitions and reward shareholders.
In addition, the company has reaffirmed its guidance for 2019. Earnings are anticipated to be in a $8.50-$8.70 per share range. In addition, free cash flow conversion is predicted to be 85-90%.
Our Take
Stanley Black & Decker’s market expansion strategies are expected to be key growth drivers, going forward. In this regard, brands like Newell Tools have been strengthening the company’s tools business through deeper penetration into markets worldwide. In addition, the buyout of industrial business of Nelson Fastener Systems (April 2018) has been strengthening its Engineered Fastening business, and will be accretive to earnings.
Over the past six months, the Zacks Rank #3 (Hold) company has yielded a return of 7.3%, outperforming 2.1% growth recorded by the industry.
However, the company is currently dealing with adverse impact of rising cost of sales, primarily due to commodity inflation, unfavorable impact of foreign currency movements and tariffs.
Key Picks
Some better-ranked stocks from Zacks Industrial Products sector are Harsco Corporation , Dover Corporation (DOV - Free Report) and Actuant Corporation . While Harsco sports a Zacks Rank #1 (Strong Buy), Dover and Actuant carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Harsco exceeded estimates in each of the preceding four quarters, the average positive earnings surprise being 11.40%.
Dover surpassed estimates in each of the trailing four quarters, the average positive earnings surprise being 8.61%.
Actuant exceeded estimates in each of the preceding four quarters, the average positive earnings surprise being 11.01%.
This Could Be the Fastest Way to Grow Wealth in 2019
Research indicates one sector is poised to deliver a crop of the best-performing stocks you'll find anywhere in the market. Breaking news in this space frequently creates quick double- and triple-digit profit opportunities.
These companies are changing the world – and owning their stocks could transform your portfolio in 2019 and beyond. Recent trades from this sector have generated +98%, +119% and +164% gains in as little as 1 month.
Click here to see these breakthrough stocks now >>