StockStory Sees Growth and Earnings Risks at Stanley Black & Decker

StockStory said Stanley Black & Decker’s recent share rally does not outweigh concerns about its growth and earnings. The publisher reported a 32.1% gain over six months, beating the S&P 500 by 10.9%, with solid quarterly results partly driving the rise.

As of 17:41 UTC on Sept. 30, the shares traded at $89.48, up 0.78% since the previous close.

The publisher said the company’s organic revenue had not grown over the past two years. It also cited analysts’ expectation that revenue will be nearly flat over the next 12 months, after flat revenue over the past five years.

Stanley Black & Decker’s earnings per share fell 15.9% annually over five years, according to StockStory. The publisher said a fixed cost base made it difficult for the company to adjust to uneven demand.

StockStory put the shares at 15.2 times forward earnings and called the valuation reasonable, but said it saw limited opportunity. The article also said the publisher preferred a software stock, but did not name it in the excerpt.