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Valued at a market cap of $16.5 billion, Stanley Black & Decker, Inc. (SWK) is a leading manufacturer in the tools and accessories industry. Based in New Britain, Connecticut, the company operates through two main segments: Tools & Storage and Industrial, providing a wide range of products for both professional and consumer markets.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Stanley Black & Decker fits this criterion perfectly. Stanley Black & Decker is renowned for its extensive portfolio of innovative and high-quality tools and security solutions, catering to both professional and consumer markets, backed by a legacy of over 180 years in manufacturing.
However, SWK has fallen 1.3% from its 52-week high of $108.37, recorded on Sep. 19. Stanley Black & Decker shares have surged 30.7% over the past three months, outperforming the broader Nasdaq Composite's ($NASX) 3.3% gain during the same period.
Nevertheless, longer term, SWK stock has gained 9.1% on a YTD basis, lagging behind NASX's 20.4% increase over the same period. Also, SWK has risen 27.9% over the past 52 weeks, compared to NASX's 36.8% gains.
Yet, since July, SWK has consistently traded above both its 50-day and 200-day moving averages.
Shares of Stanley Black & Decker soared nearly 10% on Jul. 30 after the company reported stronger-than-expected Q2 adjusted earnings of $1.09 per share and revenue of $4.02 billion, driven by improved product margins from cost-cutting measures. Additionally, the company raised its adjusted annual profit forecast to a range of $3.70 per share to $4.50 per share, bolstering investor confidence.
In contrast, rival Snap-on Incorporated (SNA) is underperforming SWK. Snap-on shares have gained 11.2% over the past 52 weeks and a drop of 1.5% on a YTD basis.
Due to SWK's underperformance relative to NASX over the past year, analysts remain cautious about its prospects. Among the 15 analysts covering the stock, there is a consensus rating of “Hold,” and it is currently trading above the mean price target of $105.45.
On the date of publication, Sohini Mondal 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.
