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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 $9.7 billion, the company operations span the Americas, Europe, and Asia.
The tools and accessories giant has significantly underperformed the broader market over the past year. SWK stock has plummeted 28.9% over the past 52 weeks and 22% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 8.6% gains over the past year and 3.8% decline in 2025.
Narrowing the focus, SWK has also underperformed the sector-focused Industrial Select Sector SPDR Fund’s (XLI) 8.4% gains over the past 52 weeks and 3.3% uptick in 2025.
SWK stock dropped nearly 2% after the release of its mixed Q1 results on Apr. 30. While the company's organic sales increased nearly 1%, SWK’s net sales dropped 3.2% year-over-year to $3.7 billion due to currency headwinds. However, this figure surpassed the Street’s expectations by a thin margin. On a more positive note, the company delivered an impressive 35.9% year-over-year growth in adjusted net income to $114.4 million, and its adjusted EPS of $0.75 surpassed the analysts' expectations by 10.3%.
Nevertheless, the company has continued to observe negative cash flow from operations. During the quarter, SWK’s operating cash outflows stood at $420 million. Meanwhile, due to the impact of tariffs, the company implemented price increases in April and notified customers of further price actions on the way, which is expected to further dampen the company’s topline trajectory.
For the currency FY 2025, ending in December, analysts expect SWK to report a 2.8% year-over-year decline in adjusted EPS to $4.24. However, the company has a solid earnings surprise history. It has surpassed the Street’s bottom-line estimates in each of the past four quarters by notable margins.
The stock holds a consensus “Moderate Buy” rating overall. Of the 16 analysts covering the stock, opinions include six “Strong Buys,” eight “Holds,” and two “Strong Sells.”
This configuration is slightly more bullish than three months ago, when only five analysts gave “Strong Buy” recommendations.
On May 1, Baird analyst Timothy Wojs maintained a “Neutral” rating on SWK, while raising the price target from $60 to $65.
As of writing, SWK’s mean price target of $80.15 represents a 27.9% premium to current price levels. While its street-high target of $120 suggests a staggering 91.5% upside potential.
