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Stanley Black & Decker (SWK) Gains But Lags Market: What You Should Know
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Stanley Black & Decker (SWK - Free Report) closed at $77.04 in the latest trading session, marking a +1.74% move from the prior day. This change lagged the S&P 500's 2.6% gain on the day. Elsewhere, the Dow gained 2.83%, while the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the tool company had lost 12.49% over the past month, lagging the Industrial Products sector's loss of 11.63% and outpacing the S&P 500's loss of 12.9% in that time.
Wall Street will be looking for positivity from Stanley Black & Decker as it approaches its next earnings report date. This is expected to be October 27, 2022. The company is expected to report EPS of $0.75, down 72.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.24 billion, down 0.5% from the year-ago period.
SWK's full-year Zacks Consensus Estimates are calling for earnings of $5.53 per share and revenue of $17.1 billion. These results would represent year-over-year changes of -47.23% and +1.64%, respectively.
Investors should also note any 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Stanley Black & Decker is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Stanley Black & Decker has a Forward P/E ratio of 13.7 right now. This represents a discount compared to its industry's average Forward P/E of 14.08.
It is also worth noting that SWK currently has a PEG ratio of 1.52. 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. The Manufacturing - Tools & Related Products industry currently had an average PEG ratio of 1.96 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 93, putting it in the top 37% 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 (SWK) Gains But Lags Market: What You Should Know
Stanley Black & Decker (SWK - Free Report) closed at $77.04 in the latest trading session, marking a +1.74% move from the prior day. This change lagged the S&P 500's 2.6% gain on the day. Elsewhere, the Dow gained 2.83%, while the tech-heavy Nasdaq lost 0.05%.
Heading into today, shares of the tool company had lost 12.49% over the past month, lagging the Industrial Products sector's loss of 11.63% and outpacing the S&P 500's loss of 12.9% in that time.
Wall Street will be looking for positivity from Stanley Black & Decker as it approaches its next earnings report date. This is expected to be October 27, 2022. The company is expected to report EPS of $0.75, down 72.92% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.24 billion, down 0.5% from the year-ago period.
SWK's full-year Zacks Consensus Estimates are calling for earnings of $5.53 per share and revenue of $17.1 billion. These results would represent year-over-year changes of -47.23% and +1.64%, respectively.
Investors should also note any 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Stanley Black & Decker is holding a Zacks Rank of #4 (Sell) right now.
Valuation is also important, so investors should note that Stanley Black & Decker has a Forward P/E ratio of 13.7 right now. This represents a discount compared to its industry's average Forward P/E of 14.08.
It is also worth noting that SWK currently has a PEG ratio of 1.52. 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. The Manufacturing - Tools & Related Products industry currently had an average PEG ratio of 1.96 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 93, putting it in the top 37% 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.