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Why Stanley Black & Decker (SWK) is a Top Value Stock for the Long-Term

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals.

Achieving those goals is made easier with the Zacks Style Scores, a unique set of guidelines that rates stocks based on popular investing methodologies, namely value, growth, and momentum. The Style Scores can help you narrow down which stocks are better for your portfolio and which ones can beat the market over the long-term.

Why Investors Should Pay Attention to This Value Stock

Different than growth or momentum investors, value-focused investors are all about finding good stocks at good prices, and discovering which companies are trading under what their true value is before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, and Price/Cash Flow to help pick out the most attractive and discounted stocks.

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Stanley Black & Decker (SWK)

Headquartered in New Britain, CT, Stanley Black & Decker, Inc. manufactures and provides tools (power and hand tools) and related accessories, engineered fastening systems, and several other items and services. On a geographical basis, the company has operations in the United States, Canada, Europe, Japan and emerging markets.

SWK is a Zacks Rank #3 (Hold) stock, with a Value Style Score of B and VGM Score of A. Shares are currently trading at a forward P/E of 21.9X for the current fiscal year compared to the Manufacturing - Tools & Related Products industry's P/E of 21.1X. Additionally, SWK has a PEG Ratio of 2.4 and a Price/Cash Flow ratio of 16.4X. Value investors should also note SWK's Price/Sales ratio of 0.9X.

A company's earnings performance is important for value investors as well. For fiscal 2024, one analyst revised their earnings estimate higher in the last 60 days for SWK, while the Zacks Consensus Estimate has increased $0.07 to $4.13 per share. SWK also holds an average earnings surprise of 41.5%.

Investors should take the time to consider SWK for their portfolios due to its solid Zacks Ranks, notable earnings and valuation metrics, and impressive Value and VGM Style Scores.

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

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Zacks Investment Research