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Stanley Black & Decker (SWK) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Stanley Black & Decker (SWK) closed at $106.11, marking a -1.77% move from the previous day. This change lagged the S&P 500's 0.3% loss on the day. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.28%.

Coming into today, shares of the tool company had gained 1.37% in the past month. In that same time, the Industrial Products sector lost 4.76%, while the S&P 500 gained 1.51%.

Wall Street will be looking for positivity from Stanley Black & Decker as it approaches its next earnings report date. This is expected to be July 28, 2022. On that day, Stanley Black & Decker is projected to report earnings of $2.14 per share, which would represent a year-over-year decline of 30.52%. Meanwhile, our latest consensus estimate is calling for revenue of $4.77 billion, up 10.91% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $9.95 per share and revenue of $19.14 billion. These totals would mark changes of -5.06% and +13.73%, respectively, from last year.

It is also important to note the 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.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.21% lower. Stanley Black & Decker is holding a Zacks Rank of #4 (Sell) right now.

In terms of valuation, Stanley Black & Decker is currently trading at a Forward P/E ratio of 10.86. This valuation marks a discount compared to its industry's average Forward P/E of 14.14.

Also, we should mention that SWK has a PEG ratio of 1.21. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Manufacturing - Tools & Related Products industry currently had an average PEG ratio of 1.73 as of yesterday's close.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 242, putting it in the bottom 4% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SWK in the coming trading sessions, be sure to utilize Zacks.com.


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