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

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In the latest trading session, Stanley Black & Decker (SWK - Free Report) closed at $87.63, marking a -0.95% move from the previous day. This change lagged the S&P 500's 0.07% loss on the day. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, lost 3.22%.

Prior to today's trading, shares of the tool company had gained 19.65% over the past month. This has outpaced the Industrial Products sector's gain of 3.75% and the S&P 500's gain of 4.64% in that time.

Investors will be hoping for strength from Stanley Black & Decker as it approaches its next earnings release, which is expected to be February 2, 2023. On that day, Stanley Black & Decker is projected to report earnings of -$0.33 per share, which would represent a year-over-year decline of 115.42%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.96 billion, down 2.77% from the year-ago period.

Any recent changes to analyst estimates for Stanley Black & Decker should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.

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. The Zacks Consensus EPS estimate has moved 2.4% lower within the past month. Stanley Black & Decker currently has a Zacks Rank of #5 (Strong Sell).

Looking at its valuation, Stanley Black & Decker is holding a Forward P/E ratio of 21.16. This represents a premium compared to its industry's average Forward P/E of 18.74.

Also, we should mention that SWK has a PEG ratio of 2.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Manufacturing - Tools & Related Products industry currently had an average PEG ratio of 2.08 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 243, putting it in the bottom 4% 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.

You can find more information on all of these metrics, and much more, on Zacks.com.


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