Wall Street Strategies Discusses Earnings From Stanley Black & Decker

Wall Street Strategies is out with a research report on Stanley Black & Decker, Inc. (NYSE: SWK) after it reported earnings last night. It has a Hold rating on shares.

In a note to clients, Wall Street Strategies writes, "We aren't trying to pooh-pooh SWK's quarter, rather just explain the underlying factors that sent the stock lower afterhours following an initial pop. The company's organic top line growth rate in the Industrial segment was strong owing to North America and emerging markets, while comments on Security trends were encouraging. That said, a report such as this is why we downgraded our rating on the stock on June 6; it's not that SWK doesn't enjoy the strongest competitive industry position, it's that trends in the business may not truly be living up to the bullish estimates held by the market. SWK shares change hands at a PEG ratio of 4.5x, implying the market has priced in a fair amount of growth that now is somewhat at risk given core trends in the business. Let's see how the usually fancy conference call presentation from management unfolds before deciding to upgrade, downgrade again, or stay the course on the Hold rating."

Shares of SWK are down 9 cents today to $68.52, a loss of 0.13%.