Stanley Black & Decker (SWK) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Stanley Black & Decker (SWK) closed at $86.27, marking a +0.52% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.34%. At the same time, the Dow added 0.64%, and the tech-heavy Nasdaq gained 8.98%.
Prior to today's trading, shares of the tool company had gained 5.59% over the past month. This has outpaced the Industrial Products sector's gain of 4.51% and the S&P 500's gain of 1% in that time.
Stanley Black & Decker will be looking to display strength as it nears its next earnings release, which is expected to be February 2, 2023. On that day, Stanley Black & Decker is projected to report earnings of -$0.27 per share, which would represent a year-over-year decline of 112.62%. Our most recent consensus estimate is calling for quarterly revenue of $3.92 billion, down 3.69% from the year-ago period.
It is also important to note the recent changes to analyst estimates for Stanley Black & Decker. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 7.52% lower within the past month. Stanley Black & Decker is holding a Zacks Rank of #5 (Strong Sell) right now.
In terms of valuation, Stanley Black & Decker is currently trading at a Forward P/E ratio of 20.52. This valuation marks a premium compared to its industry's average Forward P/E of 18.02.
We can also see that SWK currently has a PEG ratio of 2.28. 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. SWK's industry had an average PEG ratio of 2.94 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 246, putting it in the bottom 3% 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 Zacks.com.
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Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report
