In the latest trading session, Stanley Black & Decker (SWK) closed at $78.64, marking a +1.22% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 1.2%, and the Nasdaq, a tech-heavy index, lost 0.68%.
Coming into today, shares of the tool company had lost 12.88% in the past month. In that same time, the Industrial Products sector lost 9.39%, while the S&P 500 lost 3.9%.
Investors will be hoping for strength from Stanley Black & Decker as it approaches its next earnings release. 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%. Meanwhile, our latest consensus estimate is calling for revenue of $4 billion, down 10.09% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for Stanley Black & Decker. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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.
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. Over the past month, the Zacks Consensus EPS estimate has moved 2.81% lower. Stanley Black & Decker is currently sporting a Zacks Rank of #5 (Strong Sell).
In terms of valuation, Stanley Black & Decker is currently trading at a Forward P/E ratio of 93.42. Its industry sports an average Forward P/E of 17.31, 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 10.38. 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 was holding an average PEG ratio of 2.47 at yesterday's closing price.
The Manufacturing - Tools & Related Products industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 213, which puts it in the bottom 16% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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