Is it time to review Stanley Black & Decker, Inc. (NYSE:SWK)?
Today, we’ll take a look at well-established Stanley Black & Decker, Inc. (NYSE: SWK). Shares of the company have seen significant price moves in recent months on the NYSE, reaching highs of US$195 and falling to lows of US$138. Certain movements in the stock price can give investors a better opportunity to get into the stock and potentially buy at a lower price. A question that needs to be answered is whether Stanley Black & Decker’s current trading price of US$141 reflects the true value of large cap stocks? Or is it currently undervalued, giving us the opportunity to buy? Let’s take a look at Stanley Black & Decker’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change.
Check out our latest analysis for Stanley Black & Decker
What is Stanley Black & Decker worth?
Good news, investors! Stanley Black & Decker is still a good deal right now according to my multiple price model, which compares the company’s price-earnings ratio to the industry average. I used the price/earnings ratio in this case because there is not enough visibility to predict its cash flow. The stock’s ratio of 13.56x is currently well below the industry average of 24.49x, meaning it is trading at a lower price than its peers. What’s more interesting is that Stanley Black & Decker’s stock price is quite volatile, giving us more of a chance to buy since the stock price could go down (or up) at the end of the day. ‘to come up. This is based on its high beta, which is a good indicator of how the stock is doing relative to the rest of the market.
What kind of growth will Stanley Black & Decker generate?
Future prospects are an important aspect when considering buying a stock, especially if you are an investor looking to grow your portfolio. Buying a big company with solid prospects at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Stanley Black & Decker’s earnings over the next few years are expected to increase by 40%, indicating a very optimistic future. This should lead to more robust cash flow, fueling higher share value.
What does this mean to you :
Are you a shareholder? Since SWK is currently below the industry PE ratio, now might be the time to increase your stock holdings. With an optimistic outlook on the horizon, it appears that this growth has yet to be fully priced into the stock price. However, there are also other factors such as capital structure to consider, which could explain the current price multiple.
Are you a potential investor? If you’ve been keeping an eye on SWK for a while, it might be time to get into the stock. Its buoyant future earnings outlook is not yet fully reflected in the current share price, meaning it’s not too late to buy SWK. But before making investment decisions, consider other factors such as the track record of its management team, in order to make an informed investment decision.
So, if you want to dig deeper into this stock, it is crucial to consider the risks it faces. For example, we have identified 4 warning signs for Stanley Black & Decker (1 is concerning) that you should know about.
If you are no longer interested in Stanley Black & Decker, you can use our free platform to view our list of over 50 other stocks with high growth potential.
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This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts only using unbiased methodology and our articles are not intended to be financial advice. It is not a recommendation to buy or sell stocks and does not take into account your objectives or financial situation. Our goal is to bring you targeted long-term analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price-sensitive companies or qualitative materials. Simply Wall St has no position in the stocks mentioned.