Important note

This AI stock analysis for Stanley Black & Decker is not up to date. Creating and accessing our AI stock Analysis (powered by our data and Chat GPT) is only available for our premium users. Sign up to get access today!

Stanley Black & Decker - AI Stock Analysis

Analysis generated June 26, 2024

Stanley Black & Decker, Inc. (SWK) is a diversified global provider of hand tools, power tools, and related accessories, among other products. Founded in 1843, the company is a staple in the industrial sector, consistently ranking as one of the leading names in tool manufacturing. The company's operations are divided into three segments: Tools & Storage, Industrial, and Security, which cater to a wide range of customers, including professionals and homeowners.

Fundamental Analysis

The company's revenue for the last quarter was $3.87 billion, a growth of 3.56% compared to the previous quarter. This incremental growth is a positive sign, suggesting the company is doing well in the short term. However, when compared to the same quarter last year, there is a decrease of 1.58%, highlighting some concerns regarding long-term growth stability.

The net income for the last quarter was $20 million. This represents a notable increase of 106.41% compared to the previous quarter and a staggering increase of 110.38% compared to the same quarter last year. This extraordinary year-over-year growth indicates that the company has managed to improve its bottom line considerably.

EBITDA for the last quarter stood at $221 million. Although this is a decline of 56.91% compared to the previous quarter, it marks a significant year-over-year increase of 1,362.91%. The current P/E ratio is 24.55, which is within the normal range, indicating the stock is neither overvalued nor undervalued based on earnings multiples.

Technical Analysis

The current stock price is $81.21, representing a decrease of 4.79% from the previous month. On a longer time horizon, the stock has fallen by 9.19% over the last year, signaling potential investor concerns about long-term prospects. The trend is currently bearish, supported by the Simple Moving Average (SMA10), which has decreased from 83.99 to 83.75.

The Relative Strength Index (RSI) is 63.9, which indicates a neutral condition for the stock. This neutrality suggests the stock is neither oversold nor overbought at this point, but the bearish trend might prompt investors to exercise caution.

Alternative Data Analysis

From a job postings and employee sentiment perspective, Stanley Black & Decker has 640 open positions, and this number has been stable over the past few months. Employee sentiment is neutral, suggesting a stable work environment. However, the flat hiring rate could imply caution in expansion.

Customer acquisition data shows that the company's website has an estimated 150,000 visitors, down by 6% in the last couple of months. This decline in web traffic may indicate reducing interest or a loss in customers. Finally, customer engagement metrics show that the company has 13,000 Instagram followers and 9,900 Twitter followers, with no meaningful change over the past months, signaling stagnation in social media influence.

AltIndex’s AI score gives Stanley Black & Decker a score of 37, which is a sell signal, corroborating the mixed to negative signals from other analyses.

Conclusion and Recommendation

In conclusion, Stanley Black & Decker presents a mixed bag of metrics across fundamental, technical, and alternative data analyses. The company has shown short-term growth in revenue and impressive year-over-year net income and EBITDA improvements. However, technical indicators and alternative data present several causes for concern, including a bearish trend in stock price, declining web traffic, and neutral employee sentiment. The AltIndex AI score of 37 suggests a sell signal. Given these mixed signals, my recommendation for Stanley Black & Decker is a cautious hold for current investors. New investors might want to wait for more robust signals of improvement or a reduction in negative trends before considering an entry.

Disclaimer: This AI stock analysis, generated by an experimental AI tool, is for informational purposes only and not financial advice. Information is based on publicly available data and may not always be accurate or current.