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

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 industry lower today making it today's featured Industrial laggard. The industry as a whole closed the day down 0.4%. By the end of trading, Stanley Black & Decker fell 83 cents (-1.1%) to $77.56 on average volume. Throughout the day, 1.8 million shares of Stanley Black & Decker exchanged hands as compared to its average daily volume of 1.5 million shares. The stock ranged in price between $76.23-$77.78 after having opened the day at $77.38 as compared to the previous trading day's close of $78.39. Other companies within the Industrial industry that declined today were: Continental Materials Corporation ( CUO), down 10.5%, Altair Nanotechnologies ( ALTI), down 5.8%, China Yuchai International ( CYD), down 5.6%, and Nidec Corporation ( NJ), down 5.3%.
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Stanley Black & Decker, Inc. provides power and hand tools, mechanical access solutions, and electronic security and monitoring systems for various industrial applications primarily in the United States, Canada, Europe, and Asia. Stanley Black & Decker has a market cap of $12.76 billion and is part of the industrial goods sector. The company has a P/E ratio of 29.3, above the S&P 500 P/E ratio of 17.7. Shares are up 6% year to date as of the close of trading on Thursday. Currently there are eight 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 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, Exide Technologies ( XIDE), up 14.6%, Hardinge ( HDNG), up 6.1%, Ballard Power Systems ( BLDP), up 4.3%, and Advanced Emissions Solutions ( ADES), up 3.8%, were all gainers within the industrial industry with Rockwell Automation Incorporated ( ROK) being today's featured industrial industry leader.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the industrial industry could consider SPDR Dow Jones Industrial Average ( DIA) while those bearish on the industrial industry could consider ProShares UltraShort Industrials ( SIJ).

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