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With a market cap of $10.2 billion, Stanley Black & Decker, Inc. (SWK) is a global provider of tools, storage solutions, and engineered fastening systems. The company operates through two main segments: Tools & Outdoor, which offers hand and power tools, outdoor products, and related accessories for professionals and consumers; and Industrial, which delivers advanced fastening technologies and attachments for industrial markets.
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Stanley Black & Decker fits this criterion perfectly. Its products are sold worldwide under renowned brands such as DEWALT, CRAFTSMAN, BLACK+DECKER, and HUSTLER, through a range of distribution channels including retailers, distributors, and direct sales.
Shares of the New Britain, Connecticut-based company have decreased 40.8% from its 52-week high of $110.88. SWK stock has fallen 17.5% over the past three months, underperforming the Industrial Select Sector SPDR Fund’s (XLI) 8.8% gain over the same time frame.
In the longer term, SWK stock is down 18.2% on a YTD basis, lagging behind XLI’s 9.2% increase. In addition, shares of the toolmaker have declined 22.2% over the past 52 weeks, compared to XLI’s nearly 17% return over the same time frame.
The stock has been trading below its 200-day moving average since November last year. Yet, it has risen above the 50-day moving average since early May.
Despite reporting better-than-expected Q1 2025 adjusted EPS of $0.75 and revenue of $3.7 billion, SWK shares fell over 2% on Apr. 30. Investors reacted negatively to the 3% year-over-year revenue decline driven by currency headwinds and divestitures, as well as a sharp 21% drop in fastener sales due to automotive sector weakness. Adding to concerns, the company cut its 2025 adjusted EPS forecast to $4.50, citing margin pressures and rising costs linked to U.S. tariffs on metals and Chinese imports, which have prompted plans for further price hikes.
Moreover, SWK stock has lagged behind its rival, Snap-on Incorporated (SNA). While Snap-on stock has declined 9.2% on a YTD basis, it has gained 15.6% over the past 52 weeks.
Despite the stock’s underperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 16 analysts' coverage, and as of writing, SWK is trading below the mean price target of $81.15.
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.
