/Stanley%20Black%20%26%20Decker%20Inc%20logo%20on%20building-by%20Jevanto%20Productions%20via%20Shutterstock.jpg)
New Britain, Connecticut-based Stanley Black & Decker, Inc. (SWK) provides hand tools, power tools, outdoor products, related accessories, engineered fastening systems, and several other items and services. With a market cap of $15 billion, the company's operations span the Americas, Europe, and Asia.
The tools & accessories major has substantially underperformed the broader market over the past year. Over the past 52 weeks, SWK gained 6.4%, lagging behind the S&P 500 Index’s ($SPX) 26.1% returns. In 2024, SWK is down marginally compared to SPX’s 16.5% gains on a YTD basis.
Narrowing the focus, SWK has also underperformed the S&P 500 Industrial Sector SPDR’s (XLI) 18.7% returns over the past 52 weeks and 11.4% gains on a YTD basis.
Despite lagging behind the broader market over the past year, Stanley Black & Decker has shown a remarkable turnaround over the past month. The stock surged 10% following the release of its Q2 earnings on Jul. 30. While the company reported a 3.2% annual decline in Q2 revenues to $4.02 billion, its adjusted EPS saw a significant rebound, climbing to $1.09 from a loss of $0.11 per share reported in the prior-year quarter. This impressive performance exceeded the consensus EPS estimate of $0.85 by a substantial 28.2%, making investors delighted.
For fiscal 2024, ending in December, analysts expect Stanley Black & Decker to report a massive EPS growth of 184.8% annually to $4.13. The company’s earnings surprise history is robust. It beat the consensus estimate in each of the last four quarters.
Among the 15 analysts covering the stock, the consensus rating is a “Hold.” That’s based on four “Strong Buy” ratings, nine “Holds,” and two “Strong Sell.”
This configuration is slightly less bullish than three months ago, with five analysts advising a “Strong Buy.”
On Aug. 5, JP Morgan (JPM) analyst Michael Rehaut maintained an “Underweight” rating with a price target of $80.
SWK’s mean price target of $103.90 represents a premium of 6.8% from current price levels. The Street-high target of $135 indicates a potential upside of 38.7%.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
