SWK Stock Analysis — Stanley Black & Decker
Sector: Industrials
AI Verdict
SWK trades at a big discount to the sector on next year's earnings, but you're betting its brand-driven moat can actually deliver the huge profit rebound analysts expect.
Competitive Moat
Stanley Black & Decker dominates in branded power tools and industrial fasteners, with deep distribution relationships across retail and professional channels. Its moat comes from brand loyalty and shelf space at big-box retailers, making it hard for new entrants to displace their products.
Summary
Earnings are expected to more than double next year, with forward EPS growth consensus at 132.8%.
Where It Stands
SWK is up 19.25% over the past year, trades at 15.0x next year's earnings (well below the industrials sector median of 20x), and sits at a neutral RSI of 50.5.
Key Metrics
- RSI: 50.5 — Neutral
- Trailing P/E: 34.9x
- Forward P/E: 15.0x
- PEG Ratio: 0.25
- Earnings Growth: +1.3%
- Revenue Growth: +0.0%
- Market Cap: $13.3B
- Dividend Yield: 0.04%
- 1-Year Return: 19.25%
- 52-Week High: $95.16
- 52-Week Low: $61.90
Analyst Consensus
8 Buy · 14 Hold · 0 Sell (22 analysts)
Bull Case
You're paying just 15.0x forward earnings for a company expected to deliver 132.8% EPS growth, which is cheap for the growth on offer if its brand moat holds.
Bear Case
If the forward P/E reverts to the sector median of 20x but earnings disappoint, the stock could see a sharp pullback from its current 34.9x trailing P/E.
Catalyst to Watch
Watch the next quarterly earnings report for confirmation that the expected 132.8% EPS growth is materializing.