Stanley Black & Decker (SWK) closed the most recent trading day at $76.76, moving +0.44% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow lost 0.12%, and the Nasdaq, a tech-heavy index, lost 3.64%.
Prior to today's trading, shares of the tool company had lost 9.66% over the past month. This has lagged the Industrial Products sector's loss of 5.06% and the S&P 500's gain of 0.07% in that time.
Wall Street will be looking for positivity from Stanley Black & Decker as it approaches its next earnings report date. In that report, analysts expect Stanley Black & Decker to post earnings of -$0.73 per share. This would mark a year-over-year decline of 134.76%. Our most recent consensus estimate is calling for quarterly revenue of $4 billion, down 10.09% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.83 per share and revenue of $16.21 billion. These totals would mark changes of -82.03% and -4.35%, respectively, from last year.
Investors might also notice 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Stanley Black & Decker currently has a Zacks Rank of #5 (Strong Sell).
Digging into valuation, Stanley Black & Decker currently has a Forward P/E ratio of 91.89. Its industry sports an average Forward P/E of 18.2, so we one might conclude that Stanley Black & Decker is trading at a premium comparatively.
Investors should also note that SWK has a PEG ratio of 10.21 right now. 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. Manufacturing - Tools & Related Products stocks are, on average, holding a PEG ratio of 2.58 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 231, putting it in the bottom 9% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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