Stanley Black & Decker (SWK) closed the most recent trading day at $80, moving +0.21% from the previous trading session. This move outpaced the S&P 500’s daily gain of 0.09%. At the same time, the Dow added 0.07%, and the tech-heavy Nasdaq gained 0.98%.
Prior to today’s trading, shares of the tool company had gained 5.78% over the past month. This has outpaced the Industrial Products sector’s gain of 2.35% and the S&P 500’s gain of 4.59% 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 May 4, 2023. The company is expected to report EPS of -$0.73, down 134.76% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $4 billion, down 10.02% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.77 per share and revenue of $16.29 billion. These totals would mark changes of -83.33% and -3.91%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Stanley Black & Decker. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.
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 8.02% lower within the past month. Stanley Black & Decker is holding a Zacks Rank of #4 (Sell) right now.
In terms of valuation, Stanley Black & Decker is currently trading at a Forward P/E ratio of 104.35. Its industry sports an average Forward P/E of 18.36, so we one might conclude that Stanley Black & Decker is trading at a premium comparatively.
We can also see that SWK currently has a PEG ratio of 11.59. 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. The Manufacturing – Tools & Related Products industry currently had an average PEG ratio of 2.49 as of yesterday’s close.
The Manufacturing – Tools & Related Products industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 177, which puts it in the bottom 30% 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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