Latest news with #StanleyBlackDecker
Yahoo
29 minutes ago
- Business
- Yahoo
Why Stanley Black & Decker Stock Tumbled by 7% on Tuesday
Key Points Tariffs are taking quite a toll on the company. Despite a bottom-line beat for its second quarter, profitability fell during the period. 10 stocks we like better than Stanley Black & Decker › Despite decades of experience and renown as a toolmaker, Stanley Black & Decker (NYSE: SWK) couldn't fix investors' sentiment about its stock Tuesday. On the back of dispiriting second-quarter results published this morning, those folks sold out of the company's shares, leaving a more than 7% slide in price. That was a far steeper fall than the S&P 500 index's 0.3% dip. It's tough living with tariffs Stanley Black & Decker's just-reported quarter saw the company book revenue of $3.9 billion, which was down by 2% year over year. Management attributed this to a sluggish outdoor buying season, combined with shipment disruptions directly related to the tariffs imposed by the current presidential administration. Similarly, profitability also obeyed gravity. Adjusted net income slipped by almost 1% to slightly over $163 million, or $1.08 per share. The consensus analyst estimate for revenue was $4 billion, while it was $0.41 for adjusted profitability. In the earnings release, management pledged to overcome the company's current difficulties. It quoted current chief operating officer and incoming CEO Christopher Nelson as saying that it "is executing a robust plan designed to mitigate tariffs and is prioritizing adjustments to its supply chain that leverage the strength of our North American footprint while optimizing our overseas supply chain inputs for the U.S. market." Annual profit prediction Stanley Black & Decker also proffered guidance for the entirety of 2025, predicting that it will earn roughly $4.65 per share in adjusted net income. That might see some adjustment, since it's predicated on an approximately $800 million financial hit from tariffs during the year. Considering the speed with which President Donald Trump has negotiated down certain rates, however, levies on our trading partners might have considerably less impact as 2025 wears on. Should you invest $1,000 in Stanley Black & Decker right now? Before you buy stock in Stanley Black & Decker, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Stanley Black & Decker wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $633,452!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,083,392!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Stanley Black & Decker Stock Tumbled by 7% on Tuesday was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
7 days ago
- Business
- Yahoo
Stanley Black & Decker, Inc. (SWK): A Bull Case Theory
We came across a bullish thesis on Stanley Black & Decker, Inc. on Deep Value Capital's Substack. In this article, we will summarize the bulls' thesis on SWK. Stanley Black & Decker, Inc.'s share was trading at $69.80 as of July 15th. SWK's trailing and forward P/E were 29.58 and 15.82 respectively according to Yahoo Finance. Stanley Black & Decker (SWK), widely known for its power tools and iconic brands like DEWALT, CRAFTSMAN, and BLACK+DECKER, is undergoing a quiet but compelling transformation. The company has already executed $1.7 billion of a $2 billion cost-reduction plan, with gross margins rebounding to 31.2%—up 1,200bps from the trough—while operating leverage improves and inventories fall. Though 87% of revenue comes from its Tools & Outdoor division, its smaller Engineered Fastening segment serves critical applications in aerospace, auto, and industrial manufacturing. Despite its market leadership and ties to reshoring, infrastructure, and automation, the stock remains down over 65% from its 2021 highs and trades at less than 7× peak free cash flow. Management forecasts mid-single-digit organic growth, more than double industry norms, supported by housing recovery, falling interest rates, and potential policy tailwinds. Risks include prolonged weakness in housing, unresolved tariff headwinds of ~$100M annually, leadership transition friction with a new CEO starting in October, and the broader risk of a recession derailing tool demand. However, the turnaround strategy is showing real progress: core brands are gaining share, margins are expanding, and the balance sheet is cleaner. By 2028, with normalized 11% FCF margins on ~$17.6B revenue, the company could generate ~$1.94B in FCF. Applying a modest 18× multiple suggests a $34.9B valuation, over 3× today's $11.4B market cap—implying 205% upside, or a 37% CAGR. Without assuming a cyclical boom, Stanley Black & Decker represents a fundamentally de-risked, attractively priced turnaround story tied closely to America's rebuilding cycle. Previously we covered a standout on IHS Holding Limited by the same author in May 2025, which highlighted its CPI-linked tower model and strong FCF potential across emerging markets. The company's stock price has appreciated approximately by 7.5% since our coverage. The author uses an identical approach in the Stanley Black & Decker thesis, emphasizing its margin recovery and cost discipline. Stanley Black & Decker, Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 32 hedge fund portfolios held SWK at the end of the first quarter which was 34 in the previous quarter. While we acknowledge the potential of SWK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None.
Yahoo
21-07-2025
- Business
- Yahoo
1 Industrials Stock to Keep an Eye On and 2 That Underwhelm
Whether you see them or not, industrials businesses play a crucial part in our daily activities. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy. The market seems to be debating where we are in the cycle as the industrials stocks were flat over the past six months. At the same time, the S&P 500 rose by 4.1%. Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. With that said, here is one industrials stock poised to generate sustainable market-beating returns and two that may face trouble. Two IndustrialsStocks to Sell: EnerSys (ENS) Market Cap: $3.48 billion Supplying batteries that power equipment as big as mining rigs, EnerSys (NYSE:ENS) manufactures various kinds of batteries for a range of industries. Why Is ENS Not Exciting? Declining unit sales over the past two years imply it may need to invest in improvements to get back on track Demand will likely be soft over the next 12 months as Wall Street's estimates imply tepid growth of 1.6% Free cash flow margin shrank by 5.8 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive EnerSys's stock price of $88.69 implies a valuation ratio of 8.7x forward P/E. To fully understand why you should be careful with ENS, check out our full research report (it's free). Stanley Black & Decker (SWK) Market Cap: $10.85 billion With an iconic 'STANLEY' logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE:SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry. Why Do We Steer Clear of SWK? Organic sales performance over the past two years indicates the company may need to make strategic adjustments or rely on M&A to catalyze faster growth Earnings per share fell by 8.9% annually over the last five years while its revenue grew, showing its incremental sales were much less profitable Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 8.7 percentage points At $70.44 per share, Stanley Black & Decker trades at 13.1x forward P/E. Read our free research report to see why you should think twice about including SWK in your portfolio, it's free. One Industrials Stock to Watch: Allison Transmission (ALSN) Market Cap: $7.33 billion Helping build race cars at one point, Allison Transmission (NYSE:ALSN) offers transmissions to original equipment manufacturers and fleet operators. Why Does ALSN Stand Out? Offerings are mission-critical for businesses and result in a best-in-class gross margin of 47.7% Excellent operating margin of 28.8% highlights the efficiency of its business model, and its rise over the last five years was fueled by some leverage on its fixed costs Strong free cash flow margin of 20.2% enables it to reinvest or return capital consistently Allison Transmission is trading at $87.46 per share, or 8.5x forward EV-to-EBITDA. Is now a good time to buy? Find out in our full research report, it's free. High-Quality Stocks for All Market Conditions Donald Trump's April 2024 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities. The smart money is already positioning for the next leg up. Don't miss out on the recovery - check out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
10-07-2025
- Business
- Yahoo
Why Stanley Black & Decker Stock Popped Today
Wolfe Research analyst Nigel Coe upgraded Stanley stock this morning. After two years of declining sales, Coe thinks the stock looks "troughy." Stanley stock offers investors a cheap valuation and a strong dividend yield. 10 stocks we like better than Stanley Black & Decker › Shares of Stanley Black & Decker (NYSE: SWK) stock closed 3.4% higher on Tuesday after Wolfe Research analyst Nigel Coe removed his "underperform" (i.e., sell) rating from the stock, and upgraded shares of the toolmaker stock to peer perform (i.e., neutral). This wasn't exactly a full-throated howl of endorsement. Wolfe's analyst didn't feel sufficiently confident in his upgrade to hang a specific price target on the stock, for example. Still, in a note covered today on The Fly, Coe mused that markets for Stanley's products look "troughy." That's not really a word, but it should be. What Coe means by it is that demand for tools is probably near bottom now (i.e., at a trough), and should rebound, especially if the Federal Reserve ever gets around to cutting interest rates (as he thinks will happen). Stanley's currently working its way through its third straight year of declining sales, so Coe's at the very least directionally right about where sales are trending -- whether they've reached their absolute bottom, or "trough." For what it's worth, most analysts agree the company will grow earnings this year, and keep growing for at least another couple of years. Long term growth rate projections are a respectable 11%, annualized. That may not sound like much, given the stock is trading for nearly 30 times earnings today. However, Stanley's free cash flow is very strong -- $765 million over the past year, or twice reported generally accepted accounting principles (GAAP) earnings. At a 14x FCF valuation, and paying a very nice 4.7% dividend yield, Stanley looks plenty cheap to me. Whether or not it's at its absolute trough price today, I think the stock should perform well from here. Before you buy stock in Stanley Black & Decker, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Stanley Black & Decker wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $695,481!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $969,935!* Now, it's worth noting Stock Advisor's total average return is 1,053% — a market-crushing outperformance compared to 179% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Stanley Black & Decker Stock Popped Today was originally published by The Motley Fool Sign in to access your portfolio
