Is SWK Showing up the Competition in 2017?



SWK ahead of other industrial stocks

Stanley Black & Decker (SWK) stock has been on the rise since the beginning of 2017. On a YTD (year-to-date) basis, SWK has gained 14.30%, outperforming peers General Electric (GE), Honeywell (HON), and United Technologies (UTX), which have returned -5.2%, 9.6%, and 3.2%, respectively. SWK also outperformed the broader-based SPDR S&P 500 ETF (SPY), which returned 6.9%.

Stanley Black & Decker’s surge in stock price was primarily driven by better-than-expected 4Q16 earnings. The completions of the acquisition of the Craftsman brand from Sears and the tools business from Newell are expected to boost SWK’s revenue growth. SWK’s EPS (earnings per share) guidance of $6.85–$7.05 in 2017 has likely helped the stock to perform well so far in 2017.

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Moving average and relative strength index

On March 15, 2017, Stanley Black and Decker stock closed at $131.07, trading 8.1% above its 100-day moving average price of $121.27, which indicates an upward trend in the stock. SWK’s 52-week low is $99.72, while the 52-week high is $131.26.

The company’s 14-day RSI (relative strength index) of 71 indicates that the stock is in the overbought zone. (An RSI score of 70 indicates that a stock has moved temporarily into an overbought situation, whereas an RSI score below 30 indicates that a stock has moved temporarily into an oversold position.)

Continue to the subsequent parts of this series for a detailed analysis of SWK’s latest dividend, dividend yield, its analyst recommendations, and the company’s most recent valuations.


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