Stanley Black & Decker Inc (SWK): Today's Featured Industrial Goods Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Stanley Black & Decker ( SWK) pushed the Industrial Goods sector lower today making it today's featured Industrial Goods laggard. The sector as a whole closed the day down 1.1%. By the end of trading, Stanley Black & Decker fell $1.55 (-2%) to $76.08 on average volume. Throughout the day, 1.6 million shares of Stanley Black & Decker exchanged hands as compared to its average daily volume of 1.4 million shares. The stock ranged in price between $75.73-$77.46 after having opened the day at $76.92 as compared to the previous trading day's close of $77.63. Other companies within the Industrial Goods sector that declined today were: Taser International ( TASR), down 19.7%, Patrick Industries ( PATK), down 16.7%, JinkoSolar ( JKS), down 12.2%, and Ultralife Batteries ( ULBI), down 8.9%.
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Stanley Black & Decker, Inc. provides power and hand tools, mechanical access solutions, and electronic security and monitoring systems primarily in the United States, Europe, Latin America, and Canada. Stanley Black & Decker has a market cap of $13.36 billion and is part of the industrial industry. The company has a P/E ratio of 17, below the S&P 500 P/E ratio of 17.7. Shares are up 7% year to date as of the close of trading on Wednesday. Currently there are seven analysts that rate Stanley Black & Decker a buy, no analysts rate it a sell, and five rate it a hold.

TheStreet Ratings rates Stanley Black & Decker as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

On the positive front, PGT ( PGTI), up 14.7%, China Valves Technology ( CVVT), up 6.7%, Perma-Fix Environmental Services ( PESI), up 6%, and Zoltek Companies ( ZOLT), up 6%, were all gainers within the industrial goods sector with Hovnanian ( HOV) being today's featured industrial goods sector leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial goods sector could consider Industrial Select Sector SPDR ( XLI) while those bearish on the industrial goods sector could consider ProShares Short Dow 30 ( DOG).

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