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With a market cap of $13.1 billion, Stanley Black & Decker, Inc. (SWK) is a leading global manufacturer of tools, hardware, and industrial products, best known for its strong portfolio of power tool and hand tool brands, including DeWalt, Stanley, and Craftsman. Founded in 1843 and headquartered in New Britain, Connecticut, the company serves professional contractors, industrial customers, and DIY consumers worldwide.
Although Stanley Black & Decker has lagged the broader market over the past year, its recent performance tells a more encouraging story. SWK stock has tanked 2.3% over the past 52 weeks but has gained 13.9% on a YTD basis, compared to the S&P 500 Index’s ($SPX) 14% gains over the past year and marginal returns in 2025.
Narrowing the focus, SWK has also underperformed the sector-focused State Street Industrial Select Sector SPDR Fund’s (XLI) 23.6% gains over the past 52 weeks.
On Feb. 4, Stanley Black & Decker posted its fourth-quarter earnings, and its shares popped 4.5%. Its revenue came below consensus estimates at $3.7 billion, representing a 1% year-over-year decline, reflecting softer demand in parts of its business. Adjusted earnings per share of $1.41 significantly exceeded analyst expectations. It reported an adjusted gross margin of 33.3%, up 210 basis points, cash from operating activities of $956 million, and free cash flow of $883 million.
Looking ahead, Stanley Black & Decker expects its 2026 EPS to range from $4.90 to $5.70 on an adjusted basis, implying strong year-over-year growth of about 42% and 13%, respectively, at the midpoint and reflecting management’s confidence in its recovery and margin improvement efforts.
For the current year ending in December, analysts expect SWK to deliver an adjusted EPS of $5.37, up 15% year over year. Additionally, 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.
Among the 16 analysts covering the SWK stock, the consensus rating is a “Moderate Buy.” That’s based on five “Strong Buys,” 10 “Holds,” and one “Strong Sell.”
This configuration is bearish than three months ago when the six analysts suggested a “Strong Buy” for the stock.
On Jan. 14, Wells Fargo raised its price target on Stanley Black & Decker from $75 to $82, reflecting a 9.3% upward revision. Analyst Sam Reid also maintained an “Equal-Weight” rating, signaling improved expectations but a still-neutral stance on the stock’s near-term outlook.
While the stock currently trades above the mean price target of $84, the Street-high target of $98 suggests a staggering 15.8% upside potential.
