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

Stanley Black & Decker (SWK) closed the most recent trading day at $80.27, moving -0.56% from the previous trading session. This change lagged the S&P 500's 0.15% loss on the day. Elsewhere, the Dow lost 0.28%, while the tech-heavy Nasdaq added 3.16%.

Prior to today's trading, shares of the tool company had lost 5.95% over the past month. This has lagged the Industrial Products sector's loss of 3.98% and the S&P 500's loss of 5.39% in that time.

Investors will be hoping for strength from Stanley Black & Decker as it approaches its next earnings release. On that day, Stanley Black & Decker is projected to report earnings of -$0.73 per share, which would represent a year-over-year decline of 134.76%. Meanwhile, our latest consensus estimate is calling for revenue of $4 billion, down 10.09% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $0.83 per share and revenue of $16.21 billion, which would represent changes of -82.03% and -4.35%, respectively, from the prior year.

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Investors might also notice recent changes to analyst estimates for Stanley Black & Decker. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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 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 4.41% lower within the past month. Stanley Black & Decker is currently a Zacks Rank #5 (Strong Sell).

Looking at its valuation, Stanley Black & Decker is holding a Forward P/E ratio of 97.06. For comparison, its industry has an average Forward P/E of 19.24, which means Stanley Black & Decker is trading at a premium to the group.

Investors should also note that SWK has a PEG ratio of 10.78 right now. 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. Manufacturing - Tools & Related Products stocks are, on average, holding a PEG ratio of 2.77 based on yesterday's closing prices.

The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This group has a Zacks Industry Rank of 219, putting it in the bottom 14% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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Stanley Black & Decker, Inc. (SWK) : Free Stock Analysis Report

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