StockStory cites growth and earnings risks at three industrial firms

StockStory flagged Alamo, AECOM and Stanley Black & Decker for weak growth and earnings trends. The publisher’s analysis cited the industrials sector’s six-month return of 3.1%, compared with a 16.8% rise for the S&P 500.

Alamo’s sales were flat over the past two years, and StockStory said its estimated sales growth for the next 12 months was 4.2%. The company’s earnings per share fell by 5.6% annually over the same two-year period. The article put the shares at $162.53 and 14.5 times forward earnings.

For AECOM, StockStory pointed to a backlog that was flat over two years and earnings per share that fell by 6.3% annually. It also said the company’s free cash flow margin shrank by 3.5 percentage points over five years. The article listed the shares at $60.30 and 9.7 times forward earnings.

StockStory said Stanley Black & Decker’s organic sales performance over the past two years suggested a need for strategic adjustments or acquisitions to drive faster growth. It reported that sales were projected to be flat over the next 12 months, while earnings per share had fallen over five years. The article listed the shares at $89.68 and 15.7 times forward earnings.