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NEW BRITAIN, Conn., Sept. 8, 2026 /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK) today announced that Chris Nelson, President & CEO, will speak at the Morgan Stanley 14th Annual Laguna Conference on Thursday, September 17, 2026 at 11:30 AM PT (2:30 PM ET).

Transaction Further Refines the Company's Portfolio to Focus on Growing Its Biggest Brands and Businesses  

, /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK) today announced that it has entered into a definitive agreement to sell its Excel Industries ("Excel") business to Bad Boy Mowers. Excel, which is primarily made up of the professional-grade, gas-powered, ride-on and zero-turn mowers under the Hustler® brand, is expected to generate FY 2026 revenue of approximately $300 million.  

Chris Nelson, Stanley Black & Decker's President & CEO, commented, "The sale of Excel further refines our portfolio and unlocks greater shareholder value by concentrating resources on the areas where we see the most compelling opportunities to grow and win.

We remain committed to growing our Outdoor business through innovation and our strong family of brands, including Cub Cadet, Dewalt, Craftsman, Troy-Bilt, and Black+Decker. We are excited about the high-growth opportunities presented in electric outdoor products, and we will continue to thoughtfully invest in high-performance, residential ride-on and zero-turn mowers. We are confident in our plans to drive organic growth and margin expansion across this portion of our business."

Bill Beck, President, Tools & Outdoor, Stanley Black & Decker, stated, "Our Outdoor business and brands remain a strong asset, with meaningful value and opportunity ahead. As we take this next step, I want to recognize and thank our Excel team members for their exceptional dedication, hard work, and valuable contributions. Because of their efforts, the business has strong momentum and is well positioned for the future."

"We are excited to welcome Hustler and its talented team to the Bad Boy family," said Peter Ballantyne, CEO of Bad Boy Mowers. "We have tremendous respect for the business and the team that has built it over many decades. We look forward to supporting Hustler's continued success as a leader in professional grade mowers."

The transaction is subject to regulatory approval and other customary closing conditions. The Company does not expect the transaction to be dilutive to adjusted EPS. Until the transaction closes, the results of Excel will remain in continuing operations and will not be reclassified as discontinued operations.

BofA Securities, Inc. is acting as financial advisor and Cravath, Swaine & Moore LLP is acting as external legal counsel to Stanley Black & Decker.

About Excel Industries
Excel is a leading designer and manufacturer of premium commercial and residential turf-care equipment under the distinct brand of Hustler Turf Equipment (Hustler). Excel serves an extensive network of independent equipment dealer outlets that stock, sell, and service Hustler products in the United States and Canada. Excel has a strong legacy of innovation and launched the first hydrostatic zero-turn mower in 1964. Excel is located in Hesston, Kansas.

About Stanley Black & Decker
Founded in 1843 and headquartered in the USA, Stanley Black & Decker (NYSE: SWK) is a worldwide leader in Tools and Outdoor, operating manufacturing facilities globally. The Company's approximately 41,000 employees produce innovative end-user inspired power tools, hand tools, storage, digital jobsite solutions, outdoor and lifestyle products, and engineered fasteners to support the world's builders, tradespeople and DIYers. The Company's world class portfolio of trusted brands includes DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet®. To learn more visit: www.stanleyblackanddecker.com or follow Stanley Black & Decker on Facebook, Instagram, LinkedIn and X.

Investor Contacts
Michael Wherley
Vice President, Investor Relations
[email protected]
(860) 827-3833

Christina Francis
Senior Director, Investor Relations
[email protected]
(860) 438-3470

Media Contact
Debora Raymond
Vice President, Public Relations
[email protected] 
(203) 640-8054

Cautionary Note Regarding Forward-Looking Statements

Stanley Black & Decker makes forward-looking statements in this press release which represent its expectations or beliefs about future events and financial performance. Forward-looking statements are identifiable by words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may" and other similar expressions. In addition, any statements that refer to expectations, projections, proceeds or other characterizations of future events or circumstances are forward-looking statements. Forward-looking statements made in this press release include, but are not limited to, statements concerning: consummation of the transaction described herein; the Company's ability to maximize value to shareholders through active portfolio management and capital allocation; the Company's capital allocation strategy; and the expected impact of the transaction on adjusted EPS.

You are cautioned not to place undue reliance on these forward-looking statements. These forward-looking statements are not guarantees of future events and involve risks, uncertainties and other known and unknown factors that may cause actual results and performance to be materially different from any future results or performance expressed or implied by such forward-looking statements, including, but not limited to, the failure to realize the expected benefits of the Company's value creation and capital allocation strategies or the expected impact of the transaction on adjusted EPS.

Forward-looking statements made herein are also subject to risks and uncertainties described in Stanley Black & Decker's 2025 Annual Report on Form 10-K, its subsequently filed Quarterly Reports on Form 10-Q, and other filings Stanley Black & Decker makes with the Securities and Exchange Commission. In addition, actual results could differ materially from those suggested by the forward-looking statements, and therefore you should not place undue reliance on the forward-looking statements. Stanley Black & Decker makes no commitment to revise or update any forward-looking statements to reflect events or circumstances occurring or existing after the date of any forward-looking statement.

SOURCE Stanley Black & Decker, Inc.

The Zacks Manufacturing-Tools & Related Products industry is poised for growth on the back of strength in the manufacturing sector, increased investments in product development and technological advancements. The industry participants’ efforts to digitalize business operations and expand market presence through strategic acquisitions are expected to foster the growth of the industry.

However, cost inflation and challenges due to a shortage of skilled labor have marred the industry's outlook. Lincoln Electric Holdings, Inc. (LECO - Free Report) , Stanley Black & Decker, Inc. (SWK - Free Report) , Core & Main, Inc. (CNM - Free Report) and Kennametal Inc. (KMT - Free Report) are a few industry participants that can capitalize on the opportunities.

About the Industry The Zacks Manufacturing-Tools & Related Products industry comprises companies that develop and distribute hand and mechanics tools, hydraulic tools, engineered fastening systems and heavy-lifting technology solutions. Arc-welding products, robotic-welding packages, fume-extraction equipment, oxy-fuel cutting equipment, plasma cutters, healthcare solutions, electronic security solutions and other products are also produced by some tool-makers. The highly advanced tools are used in industrial, commercial, oil & gas, mining, automotive and other industries. The providers of electronic security solutions cater to commercial, retail, government, financial and healthcare markets. Regarding international operations, some industry players provide products and services to customers in North and South America, Japan, Europe, Canada, Asia and the Middle East.

Major Trends Shaping the Future of the Manufacturing Tools Industry Strength in the Manufacturing Sector: The industry has been benefiting from an increase in manufacturing activities. After witnessing a contraction in economic activities for 10 successive months till December 2025, the manufacturing sector expanded for the eighth consecutive month in August. Per the Institute for Supply Management’s (ISM) report, the Manufacturing Purchasing Manager’s Index touched 54.6% in August. A figure more than 50% indicates an expansion in manufacturing activity. Also, the New Orders Index expanded, registering 53.7% in the same month.

Investments in Product Development & Innovation: The industry participants’ constant focus on innovation, product upgrades and the development of new products to stay competitive in the market should drive growth. With the gradual development of business models and cutting-edge technologies, several industry players have been banking on digitizing their business operations for a while now. Digitization enables industry participants to boost their competitiveness through enhanced operational productivity, product quality and better cost management.

Acquisition-Based Growth Strategy: The industry participants bank on an acquisition-based growth strategy to expand their customer reach and product offerings. This helps them foray into new markets and solidify their competitive position. Exposure to various end markets helps tool manufacturing companies offset risks associated with a single market.

Rising Costs Hurt Margins: Industry participants have been encountering input cost inflation and other expenses, which have been denting profitability. Also, supply-chain issues might increase raw material and other logistics expenses. The latest ISM report’s Supplier Deliveries Index reflects slower deliveries for the ninth straight month in August. The rise in expenses, along with a tough labor market, poses a threat to margins. However, companies have been focused on cost management initiatives to mitigate cost-related challenges. These efforts include simplifying operations, improving supply-chain efficiency and applying disciplined pricing strategies.

Zacks Industry Rank Indicates Solid Prospects The Zacks Manufacturing-Tools & Related Products industry, housed within the broader Zacks Industrial Products sector, currently carries a Zacks Industry Rank #82. This rank places it in the top 34% of 243 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates strong prospects in the near term. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of the robust earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are keeping more faith in this group's earnings growth potential. The industry’s earnings estimates for 2026 have increased 16.3% since the end of September 2025.

We will present a few stocks from the industry that you may want to consider for your portfolio. But before that, it is worth taking a look at the industry’s shareholder returns and current valuation first.

Industry Underperforms Sector & S&P 500 The Zacks Manufacturing-Tools & Related Products industry has underperformed the sector and the S&P 500 composite index in the past year.

Over this period, the industry has appreciated 4.8% compared with the sector and the S&P 500 index’s growth of 18.4% and 20.6%, respectively.

One-Year Price Performance

Industry's Current Valuation On the basis of forward 12-month Price-to-Earnings (P/E), which is a commonly used multiple for valuing manufacturing tools and related product stocks, the industry is currently trading at 15.98X compared with the S&P 500’s 20.1X. It is also below the sector’s P/E (F12M) ratio of 20.62X.

Over the past five years, the industry has traded as high as 22.13X and as low as 11.65X, with a median of 17.55X, as the chart below shows:

Price-to-Earnings Ratio vs. SP500

Price-to-Earnings Ratio vs. Sector

Four Manufacturing Tool Stocks to Keep a Tab on Lincoln Electric: Based in Cleveland, OH, Lincoln Electric is engaged in manufacturing and reselling welding and cutting products. The company is poised to gain from solid momentum in the Harris Products segment, which is witnessing volume growth across all product areas, led by heating, ventilation, and air conditioning (HVAC). Product launches in the automation solutions market and investments in new technologies are also expected to support this Zacks Rank #2 (Buy) company’s growth. You can see  the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here..

Lincoln Electric reported better-than-expected results in each of the last four quarters, the earnings surprise being 3.9%, on average.

Price and Consensus: LECO

Kennametal: Based in Latrobe, PA, Kennametal is a manufacturer, marketer and distributor of high-speed metal cutting tools, tooling systems and wear-resistant parts. Its products are marketed through several channels to end users, including manufacturers of machine tools, vehicles and others. The company is benefiting from higher aerospace build rates and project wins in the energy market within the Metal Cutting segment. Favorable pricing, share gains and project execution across several end markets also augur well for the company.

This Zacks Rank #3 (Hold) company reported better-than-expected results in each of the last four quarters, the earnings surprise being 29.3%, on average.

Price and Consensus: KMT

Core & Main: Based in Saint Louis, MO, CNM provides wastewater, water, storm drainage and fire protection products and services to private water companies, municipalities and professional contractors. The company's products and services are used in the maintenance, repair, replacement and construction of infrastructure for water, storm drainage, wastewater and fire protection systems. CNM is benefiting from increased demand for fire protection products. Disciplined purchasing and pricing management also bode well for Core & Main.

CNM currently carries a Zacks Rank #3. The company reported better-than-expected results in two of the last three quarters, while matching the mark in one, the earnings surprise being 3.7%, on average.

Price and Consensus: CNM

Stanley Black: Headquartered in New Britain, CT, Stanley Black manufactures tools (power and hand tools) and related accessories and engineered fastening systems, among other items. SWK is benefiting from healthy automotive fastener demand. The company’s commitment to rewarding shareholders through dividend payments adds to its appeal. Cost-reduction efforts and supply-chain optimization programs are also expected to support Stanley Black’s margin in the quarters ahead.

SWK currently carries a Zacks Rank of 3. The company reported better-than-expected results in each of the last four quarters, the earnings surprise being 23.3%, on average.

Price and Consensus: SWK

Stanley Black & Decker, Inc. remains a Buy after a 49.9% stock surge, driven by a successful cost transformation and improved financials. SWK raised its 2026 EPS guidance to $4.60–$5.45, with management targeting mid-single-digit organic revenue growth and EBITDA margin expansion through 2028. The Tools & Outdoor segment led revenue and profit growth, while Engineered Fastening showed organic improvement despite divestitures; cash flows and EBITDA are rising.

Allworth Financial LP purchased a new stake in Stanley Black & Decker, Inc. (NYSE:SWK – Free Report) during the 2nd quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor purchased 6,297 shares of the industrial products company’s stock, valued at approximately $593,000.

Other institutional investors and hedge funds also recently modified their holdings of the company. Cardinal Point Capital Management ULC lifted its holdings in shares of Stanley Black & Decker by 2.7% during the fourth quarter. Cardinal Point Capital Management ULC now owns 4,800 shares of the industrial products company’s stock valued at $357,000 after purchasing an additional 125 shares during the last quarter. Crossmark Global Holdings Inc. increased its stake in Stanley Black & Decker by 2.8% in the 4th quarter. Crossmark Global Holdings Inc. now owns 4,606 shares of the industrial products company’s stock worth $342,000 after purchasing an additional 126 shares in the last quarter. Boothbay Fund Management LLC raised its holdings in Stanley Black & Decker by 4.0% during the 4th quarter. Boothbay Fund Management LLC now owns 3,471 shares of the industrial products company’s stock worth $258,000 after buying an additional 132 shares during the period. Bessemer Group Inc. lifted its position in shares of Stanley Black & Decker by 1.5% in the 1st quarter. Bessemer Group Inc. now owns 9,223 shares of the industrial products company’s stock valued at $654,000 after acquiring an additional 134 shares in the last quarter. Finally, Assetmark Inc. boosted its stake in Stanley Black & Decker by 19.9% in the 1st quarter. Assetmark Inc. now owns 880 shares of the industrial products company’s stock worth $63,000 after purchasing an additional 146 shares during the period. 87.77% of the stock is owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In Several brokerages have recently commented on SWK. Citigroup raised their target price on Stanley Black & Decker from $100.00 to $107.00 and gave the stock a “buy” rating in a research report on Friday, July 31st. Wall Street Zen upgraded shares of Stanley Black & Decker from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 1st. Morgan Stanley set a $96.00 price objective on shares of Stanley Black & Decker in a research note on Monday, August 10th. The Goldman Sachs Group reiterated a “neutral” rating and issued a $93.00 target price on shares of Stanley Black & Decker in a research report on Wednesday, July 29th. Finally, Weiss Ratings raised shares of Stanley Black & Decker from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, July 31st. Three analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Stanley Black & Decker currently has an average rating of “Hold” and a consensus price target of $92.25.

Check Out Our Latest Stock Analysis on Stanley Black & Decker Stanley Black & Decker Trading Down 0.1% NYSE:SWK opened at $99.91 on Monday. The company has a market capitalization of $15.09 billion, a P/E ratio of 24.37, a P/E/G ratio of 1.34 and a beta of 1.16. The stock’s 50 day moving average price is $93.06 and its 200 day moving average price is $83.23. The company has a debt-to-equity ratio of 0.53, a quick ratio of 0.55 and a current ratio of 1.43. Stanley Black & Decker, Inc. has a 52 week low of $61.90 and a 52 week high of $104.68.

Stanley Black & Decker (NYSE:SWK – Get Free Report) last posted its earnings results on Wednesday, July 29th. The industrial products company reported $1.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.21 by $0.36. The firm had revenue of $3.96 billion during the quarter, compared to analysts’ expectations of $3.97 billion. Stanley Black & Decker had a net margin of 4.07% and a return on equity of 8.78%. The company’s revenue was up .4% compared to the same quarter last year. During the same period in the previous year, the company earned $1.08 earnings per share. Stanley Black & Decker has set its FY 2026 guidance at 4.900-5.700 EPS. On average, research analysts forecast that Stanley Black & Decker, Inc. will post 5.57 EPS for the current fiscal year.

Stanley Black & Decker Increases Dividend The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 22nd. Stockholders of record on Tuesday, September 8th will be paid a dividend of $0.84 per share. This is a boost from Stanley Black & Decker’s previous quarterly dividend of $0.83. The ex-dividend date is Tuesday, September 8th. This represents a $3.36 annualized dividend and a dividend yield of 3.4%. Stanley Black & Decker’s dividend payout ratio is currently 80.98%.

More Stanley Black & Decker News Here are the key news stories impacting Stanley Black & Decker this week:

Positive Sentiment: CNBC commentator Jim Cramer called SWK a “pick-and-shovel” beneficiary of a potential home-renovation cycle, citing strong results from Home Depot and Lowe’s as evidence that demand for tools could improve. Cramer Targets Stanley Black & Decker as the Pick-and-Shovel Play on Home Renovation Boom Positive Sentiment: Zacks Research raised its FY2026 EPS forecast to $5.53 from $5.30, FY2027 EPS to $6.10 from $5.77, and FY2028 EPS to $6.60 from $6.55. It also increased several quarterly estimates, suggesting better expected earnings momentum. Stanley Black & Decker analyst estimates Positive Sentiment: Analyst commentary highlighted traction in the Engineered Fastening segment, supported by automotive and industrial demand, while the company’s $2.1 billion cost-savings program could provide additional operating leverage. Will Strength in Engineered Fastening Unit Continue to Drive SWK’s Growth? Positive Sentiment: From a technical perspective, SWK moved above its 20-day moving average and was described as showing a potential short-term bullish trend, supporting the recent price strength. Stanley Black & Decker Just Flashed Golden Cross Signal Neutral Sentiment: A report noted that Stanley Black & Decker’s 2026 outlook and planned $1 billion U.S. investment are reshaping the company’s longer-term growth narrative, although the investment could require substantial upfront spending. Stanley Black & Decker stock holds gains Neutral Sentiment: Zacks reduced its Q3 2026 EPS estimate to $1.52 from $1.66 and made a minor cut to its Q4 estimate, partially offsetting the broader upward revisions. Full-year consensus remains $5.58 per share. Stanley Black & Decker earnings estimates Stanley Black & Decker Company Profile (Free Report)

Stanley Black & Decker, Inc (NYSE:SWK) is a leading global manufacturer of industrial tools, engineered fastening systems, and security products. The company’s portfolio includes power tools, hand tools, accessories, and storage solutions marketed under well-known brands such as DEWALT, Stanley, Craftsman and Black & Decker. In addition to its core tools and hardware offerings, the company provides customized assembly and installation systems for the automotive, electronics and aerospace industries.

Operations are organized across three principal business segments.

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Jim Cramer used his Stop Trading segment on CNBC to argue that Stanley Black & Decker (NYSE:SWK | SWK Price Prediction) is a buy, connecting strong quarters from Home Depot (NYSE:HD) and Lowe’s (NYSE:LOW) to a renovation cycle. Hand tool sell-through was strong at both retailers; single-family housing starts remain weak, yet DIY buyers at Lowe’s and small contractors at Home Depot continue to pull DeWalt and Black & Decker products off the shelves.

“The renovation trade has come back on the do it yourself renovation at Lowe’s and the small contractor renovation at Home Depot are powering what I think are great sales for DeWalt, for Home Depot, and then for regular Black and Decker for Lowe’s,” Cramer said.

SWK closed at $98.85 on Thursday, down 0.95% on the day but up roughly 36% year to date. The market has partly priced in the thesis Cramer is amplifying.

What Cramer Said About the Renovation Trade Cramer frames SWK as the pick-and-shovel supplier to both big-box retailers. “Hand tools very strong for both. That’s Stanley Black and Decker SWK. I think they have to be having an unbelievable quarter,” he said.

He flagged a cleaner balance sheet from an asset sale, which meaningfully reduced leverage. The Q2 filing showed $1.7 billion in debt retired using divestiture proceeds, disclosed in the company’s 8-K exhibit.

“This may be a way to be able to play both of them because I know that they’re disparate and they’re different product lines except for when it comes to hand tools,” he added.

He stopped short of calling it a long-term position, saying, “the trade works, I really do. May develop into an investment. Frankly it’s a good place to be.”

Retailer Read-Through Only Gets You Halfway Home Depot said Q2 was a record-setting sales quarter for portable power tools, and Lowe’s plans to add over 150 new DeWalt items. That shows unit demand for SWK’s premium line.

Strong sell-through tells you what moved off shelves rather than what the supplier earned on it. SWK’s Q2 showed 3% organic revenue growth, with power tools organic revenue up 8%.

Margin benefited from a temporary source. Roughly 250 basis points of gross margin and about $0.17 of adjusted EPS came from IEEPA tariff refunds, which management has not extended into second-half guidance.

CFO Patrick Hallinan said the company keeps “dialing in promotional activity as we’ve learned more about elasticity kind of in this post-tariff high inflation environment.” A tool maker can post good volume while promotional cadence squeezes contribution margin.

Why the Composition of Demand Matters More Than the Level The durable part of the thesis is the mix. Renovation and repair spending is funded from home equity and cash flow, so it does not depend on housing turnover. Home Depot management described the housing market as frozen, noting that turnover had been at historically low levels for four years with no clear inflection point. Even so, 13 of 16 merchandising departments posted positive comparable sales.

Lowe’s described steady Pro backlogs alongside cautious homeowners choosing smaller repair and maintenance projects. That mix favors a tool supplier because tools are consumables on a work cycle.

The professional channel is the higher-quality half of the story. SWK’s U.S. commercial and industrial channel grew low double digits, and Chris Nelson described “DeWalt, which continues to lead as our growth engine focused on the pro.”

Trade or Investment: How to Frame the Setup Cramer hedged on duration, and that hedge is right. The current setup looks like a catalyst-driven trade with a cleaner balance sheet underneath, and the compounder case still needs to be earned.

Valuation reflects some of that already. Trailing PE is near 24x, forward PE is closer to 18x, and the analyst consensus target of $99.36 is essentially at the current quote.

Income is real support. The forward dividend is $3.36 annualized, with the payout raised to $0.84 for the September payment, backed by higher free cash flow guidance of $600 million to $800 million.

The risk is that the tariff refund fades, Europe stays soft, and a promotional consumer keeps pressuring pricing even as unit demand holds. Cramer’s read-through is directionally right. For readers weighing the name, the professional channel and the repair-and-maintenance mix are the parts worth underwriting while the housing recovery remains on hold.

Contact [email protected] for any questions or corrections.

Stanley Black & Decker (SWK - Free Report) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, SWK crossed above the 20-day moving average, suggesting a short-term bullish trend.

The 20-day simple moving average is a popular trading tool. It provides a look back at a stock's price over a 20-day period, and is beneficial to short-term traders since it smooths out price fluctuations and provides more trend reversal signals than longer-term moving averages.

Similar to other SMAs, if a stock's price moves above the 20-day, the trend is considered positive, while price falling below the moving average can signal a downward trend.

SWK has rallied 11.8% over the past four weeks, and the company is a Zacks Rank #2 (Buy) at the moment. This combination suggests SWK could be on the verge of another move higher.

The bullish case only gets stronger once investors take into account SWK's positive earnings estimate revisions. There have been 5 revisions higher for the current fiscal year compared to none lower, and the consensus estimate has moved up as well.

With a winning combination of earnings estimate revisions and hitting a key technical level, investors should keep their eye on SWK for more gains in the near future.

Investors looking for stocks in the Manufacturing - Tools & Related Products sector might want to consider either Stanley Black & Decker (SWK - Free Report) or Techtronic Industries Co. (TTNDY - Free Report) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.

We have found that the best way to discover great value opportunities is to pair a strong Zacks Rank with a great grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Scores work to grade companies based on specific traits.

Stanley Black & Decker has a Zacks Rank of #2 (Buy), while Techtronic Industries Co. has a Zacks Rank of #3 (Hold) right now. Investors should feel comfortable knowing that SWK likely has seen a stronger improvement to its earnings outlook than TTNDY has recently. However, value investors will care about much more than just this.

Value investors are also interested in a number of tried-and-true valuation metrics that help show when a company is undervalued at its current share price levels.

The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.

SWK currently has a forward P/E ratio of 17.90, while TTNDY has a forward P/E of 22.67. We also note that SWK has a PEG ratio of 1.34. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. TTNDY currently has a PEG ratio of 1.47.

Another notable valuation metric for SWK is its P/B ratio of 1.68. The P/B is a method of comparing a stock's market value to its book value, which is defined as total assets minus total liabilities. By comparison, TTNDY has a P/B of 4.67.

These are just a few of the metrics contributing to SWK's Value grade of B and TTNDY's Value grade of C.

SWK stands above TTNDY thanks to its solid earnings outlook, and based on these valuation figures, we also feel that SWK is the superior value option right now.

Posted by Defense World Staff on Aug 14th, 2026

Benjamin Edwards Inc. acquired a new position in shares of Stanley Black & Decker, Inc. (NYSE:SWK – Free Report) during the 2nd quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor acquired 11,842 shares of the industrial products company’s stock, valued at approximately $1,115,000.

Other hedge funds and other institutional investors also recently bought and sold shares of the company. Cape Investment Advisory Inc. bought a new position in shares of Stanley Black & Decker during the second quarter valued at approximately $35,000. Chapman Financial Group LLC bought a new stake in shares of Stanley Black & Decker in the 2nd quarter worth approximately $26,000. CYBER HORNET ETFs LLC acquired a new position in Stanley Black & Decker during the 2nd quarter valued at approximately $28,000. Motiv8 Investments LLC bought a new position in Stanley Black & Decker during the 4th quarter worth $31,000. Finally, MUFG Securities EMEA plc acquired a new stake in Stanley Black & Decker in the second quarter worth $31,000. 87.77% of the stock is currently owned by institutional investors and hedge funds.

Analyst Ratings Changes A number of equities research analysts have issued reports on SWK shares. The Goldman Sachs Group reiterated a “neutral” rating and issued a $93.00 target price on shares of Stanley Black & Decker in a research note on Wednesday, July 29th. JPMorgan Chase & Co. increased their price objective on shares of Stanley Black & Decker from $65.00 to $75.00 and gave the stock an “underweight” rating in a report on Friday, May 1st. Robert W. Baird set a $84.00 price objective on shares of Stanley Black & Decker in a research report on Thursday, April 30th. Citigroup boosted their target price on shares of Stanley Black & Decker from $100.00 to $107.00 and gave the company a “buy” rating in a research note on Friday, July 31st. Finally, Wells Fargo & Company raised their price target on shares of Stanley Black & Decker from $80.00 to $90.00 and gave the company an “equal weight” rating in a research note on Thursday, June 18th. Four analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Hold” and a consensus price target of $91.56.

View Our Latest Stock Report on Stanley Black & Decker

Stanley Black & Decker Stock Performance SWK stock opened at $102.20 on Friday. The company has a 50-day simple moving average of $90.73 and a 200 day simple moving average of $82.39. The company has a market capitalization of $15.43 billion, a P/E ratio of 24.93, a PEG ratio of 1.39 and a beta of 1.16. The company has a quick ratio of 0.55, a current ratio of 1.43 and a debt-to-equity ratio of 0.53. Stanley Black & Decker, Inc. has a fifty-two week low of $61.90 and a fifty-two week high of $104.68.

Stanley Black & Decker (NYSE:SWK – Get Free Report) last released its quarterly earnings results on Wednesday, July 29th. The industrial products company reported $1.57 EPS for the quarter, topping analysts’ consensus estimates of $1.21 by $0.36. The company had revenue of $3.96 billion for the quarter, compared to the consensus estimate of $3.97 billion. Stanley Black & Decker had a net margin of 4.07% and a return on equity of 8.78%. Stanley Black & Decker’s revenue was up .4% on a year-over-year basis. During the same period in the previous year, the firm earned $1.08 EPS. Stanley Black & Decker has set its FY 2026 guidance at 4.900-5.700 EPS. Sell-side analysts predict that Stanley Black & Decker, Inc. will post 5.53 earnings per share for the current fiscal year.

Stanley Black & Decker Increases Dividend The company also recently announced a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Tuesday, September 8th will be issued a dividend of $0.84 per share. The ex-dividend date of this dividend is Tuesday, September 8th. This is a positive change from Stanley Black & Decker’s previous quarterly dividend of $0.83. This represents a $3.36 annualized dividend and a yield of 3.3%. Stanley Black & Decker’s dividend payout ratio is presently 80.98%.

Stanley Black & Decker Company Profile (Free Report)

Stanley Black & Decker, Inc (NYSE:SWK) is a leading global manufacturer of industrial tools, engineered fastening systems, and security products. The company’s portfolio includes power tools, hand tools, accessories, and storage solutions marketed under well-known brands such as DEWALT, Stanley, Craftsman and Black & Decker. In addition to its core tools and hardware offerings, the company provides customized assembly and installation systems for the automotive, electronics and aerospace industries.

Operations are organized across three principal business segments.

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Assenagon Asset Management S.A. grew its stake in Stanley Black & Decker, Inc. (NYSE:SWK – Free Report) by 533.7% during the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 96,322 shares of the industrial products company’s stock after purchasing an additional 81,121 shares during the quarter. Assenagon Asset Management S.A. owned approximately 0.06% of Stanley Black & Decker worth $9,066,000 as of its most recent SEC filing.

A number of other hedge funds also recently modified their holdings of the stock. Chapman Financial Group LLC acquired a new stake in Stanley Black & Decker during the 2nd quarter worth approximately $26,000. CYBER HORNET ETFs LLC acquired a new position in Stanley Black & Decker in the 2nd quarter valued at $28,000. Kovack Advisors Inc. bought a new position in Stanley Black & Decker during the 4th quarter worth $28,000. Motiv8 Investments LLC acquired a new stake in shares of Stanley Black & Decker during the fourth quarter worth $31,000. Finally, MUFG Securities EMEA plc bought a new stake in shares of Stanley Black & Decker in the second quarter valued at about $31,000. Institutional investors and hedge funds own 87.77% of the company’s stock.

Analyst Upgrades and Downgrades SWK has been the topic of several research reports. The Goldman Sachs Group restated a “neutral” rating and issued a $93.00 price target on shares of Stanley Black & Decker in a research note on Wednesday, July 29th. Wall Street Zen raised shares of Stanley Black & Decker from a “buy” rating to a “strong-buy” rating in a report on Saturday, August 1st. Robert W. Baird set a $84.00 target price on shares of Stanley Black & Decker in a research report on Thursday, April 30th. JPMorgan Chase & Co. raised their target price on shares of Stanley Black & Decker from $65.00 to $75.00 and gave the stock an “underweight” rating in a report on Friday, May 1st. Finally, Citigroup lifted their price target on shares of Stanley Black & Decker from $100.00 to $107.00 and gave the company a “buy” rating in a research report on Friday, July 31st. Four equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and a consensus target price of $91.56.

Check Out Our Latest Stock Analysis on Stanley Black & Decker

Stanley Black & Decker Price Performance SWK stock opened at $103.95 on Wednesday. The company’s 50-day moving average price is $89.78 and its two-hundred day moving average price is $82.11. The firm has a market cap of $15.70 billion, a P/E ratio of 25.35, a P/E/G ratio of 1.40 and a beta of 1.16. The company has a quick ratio of 0.55, a current ratio of 1.43 and a debt-to-equity ratio of 0.53. Stanley Black & Decker, Inc. has a 12 month low of $61.90 and a 12 month high of $104.68.

Stanley Black & Decker (NYSE:SWK – Get Free Report) last issued its quarterly earnings results on Wednesday, July 29th. The industrial products company reported $1.57 earnings per share for the quarter, topping analysts’ consensus estimates of $1.21 by $0.36. The company had revenue of $3.96 billion during the quarter, compared to the consensus estimate of $3.97 billion. Stanley Black & Decker had a net margin of 4.07% and a return on equity of 8.78%. The firm’s quarterly revenue was up .4% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.08 EPS. Stanley Black & Decker has set its FY 2026 guidance at 4.900-5.700 EPS. On average, analysts anticipate that Stanley Black & Decker, Inc. will post 5.48 earnings per share for the current fiscal year.

Stanley Black & Decker Increases Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, September 22nd. Investors of record on Tuesday, September 8th will be paid a $0.84 dividend. This represents a $3.36 annualized dividend and a yield of 3.2%. This is a boost from Stanley Black & Decker’s previous quarterly dividend of $0.83. The ex-dividend date of this dividend is Tuesday, September 8th. Stanley Black & Decker’s payout ratio is 80.98%.

Stanley Black & Decker Profile (Free Report)

Stanley Black & Decker, Inc (NYSE:SWK) is a leading global manufacturer of industrial tools, engineered fastening systems, and security products. The company’s portfolio includes power tools, hand tools, accessories, and storage solutions marketed under well-known brands such as DEWALT, Stanley, Craftsman and Black & Decker. In addition to its core tools and hardware offerings, the company provides customized assembly and installation systems for the automotive, electronics and aerospace industries.

Operations are organized across three principal business segments.

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On August 04, 2026, Stanley Black and Decker Inc (SWK) shares rose 4.4% to a current price of $102.40. The stock has shown significant movement within the last ye

Global campaign celebrates the real standards, real work and real pride behind every job Campaign introduces Stan as the voice of the campaign; a sharp-witted talking toolbox who calls out jobsite nonsense with humor and honesty , /PRNewswire/ -- STANLEY, a Stanley Black & Decker (NYSE: SWK) brand and global leader in tools, today reintroduced itself through a bold new positioning, ALL BUILD. NO BULL., launching strong with an overhauled product portfolio and a global campaign that speaks to professionals in small business construction. Rooted in the experiences of residential pros, the campaign cuts through the noise, exaggeration and jobsite nonsense that stand in the way of getting the job done right—championing the pride, independence and reputation earned through honest work, and reinforcing STANLEY's commitment to equipping pros with the tools and confidence to build it.

Rooted in the experiences of residential pros, STANLEY's ALL BUILD. NO BULL. campaign takes aim at the noise, exaggeration and jobsite nonsense that stand in the way of getting the job done right. "The people who rely on STANLEY every day know the difference between noise and substance," said Guilhaume Bonafe, Brand President of STANLEY. "The new campaign sets the clear direction we are taking as a brand in everything we do: direct, confident and grounded in the realities of the job."

Introducing Stan, the Talking No-Nonsense Toolbox

At the center of the campaign is a sharp-witted talking toolbox who has been around enough jobsites to know exactly what it means to be ALL BUILD. NO BULL. Across a series of 10 ad spots, the toolbox calls out the marketing hype, overcomplicated features, and category nonsense that don't serve the pro. This character gives the campaign a voice with personality and makes a clear point: small business pros do not need more hype. They need tools that let them get more jobs done solo. At launch, the toolbox, Stan, shared: "If it sounds like bull, it usually is. Now let's get back to work."

That idea runs straight through the new STANLEY platform. ALL BUILD. NO BULL. is more than a tagline, it's the standard the brand stands behind.

"Residential pros—especially the youngest among them—are savvy enough to be skeptical and quickly tune out anything that feels like empty talk or posturing," said Tim Buszka, Senior Director, Global Brand Marketing for STANLEY. "We're showing up and making a promise other tool brands won't, and capturing attention using a sense of humor that was born on the jobsite. When STANLEY unapologetically calls out the same bull they deal with in the field every day, we show that we've understood the job from day one—and prove it through the performance of every STANLEY tool."

The campaign execution is designed for digital, social and retail media with in-store promotions planned in partnership with select retailers. The campaign will run across markets in North America, Latin America, Europe, Australia and New Zealand starting in August.

All Build from Day One

The all-work mentality has been part of STANLEY's DNA from the start. When the brand was founded in 1843, Founder Frederick Stanley saw the need for a brand that made tools shaped by the work, and workers themselves. He developed tools built to stand up to pressure, solve practical problems and help one person do more on their own.

From the No. 99 Utility Knife to the first steel tape measure to innovations like the TradeLift™, STANLEY has stayed focused on what real jobs demand. More than 180 years later, that belief still holds. Professionals build their reputations the same way STANLEY built its own: through good work, hard-won skill and problems solved. There is no room for shortcuts. No room for tools that look the part but do not hold up. And no room for bull.

To learn more about ALL BUILD. NO BULL., visit bit.ly/AllBuildNoBull, and look for the campaign across social and in retailers where STANLEY is sold.

To learn more about STANLEY, visit www.stanleytools.com.

About STANLEY
STANLEY has set the precedent for quality tools for professionals around the globe for more than 175 years. With a legacy of precision, reliability and durability, STANLEY continues to drive the industry forward with innovative solutions in hand tools, power tools, storage and accessories. For more information, visit www.stanleytools.com or follow STANLEY on Facebook and Instagram.

About Stanley Black & Decker

Founded in 1843 and headquartered in the USA, Stanley Black & Decker (NYSE: SWK) is a worldwide leader in Tools and Outdoor, operating manufacturing facilities globally. The Company's approximately 41,000 employees produce innovative end-user inspired power tools, hand tools, storage, digital jobsite solutions, outdoor and lifestyle products, and engineered fasteners to support the world's builders, tradespeople and DIYers. The Company's world class portfolio of trusted brands includes DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet®. To learn more visit: www.stanleyblackanddecker.com or follow Stanley Black & Decker on Facebook, Instagram, LinkedIn and X.

Rooted in the experiences of residential pros, the campaign cuts through the noise, exaggeration and jobsite nonsense that stand in the way of getting the job done right—championing the pride, independence and reputation earned through honest work, and reinforcing STANLEY's commitment to equipping pros with the tools and confidence to build it.

SOURCE STANLEY

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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Stanley Black & Decker (SWK - Free Report) Headquartered in New Britain, CT, Stanley Black & Decker, Inc. manufactures and provides tools (power and hand tools) and related accessories, engineered fastening systems, and several other items and services.

SWK is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Industrial Products stock. SWK has a Momentum Style Score of B, and shares are up 4% over the past four weeks.

For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.11 to $5.43 per share. SWK boasts an average earnings surprise of +23.3%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SWK should be on investors' short list.

Total Revenue: In line with prior year, up 3% organically.Adjusted Gross Margin: 33.7%, up 620 basis points year-over-year.Adjusted EBITDA Margin: 11.3%, up 320

Stanley Black & Decker, Inc. (SWK) Q2 2026 Earnings Call July 29, 2026 8:00 AM EDT

Company Participants

Michael Wherley - Vice President of Investor Relations
Christopher Nelson - President, CEO & Director
Patrick Hallinan - Executive VP, CFO & Chief Administrative Officer

Conference Call Participants

Timothy Wojs - Robert W. Baird & Co. Incorporated, Research Division
Nigel Coe - Wolfe Research, LLC
Robert Wertheimer - Melius Research LLC
Adam Baumgarten - Vertical Research Partners, LLC
David S. MacGregor - Longbow Research LLC
Brett Linzey - Mizuho Securities USA LLC, Research Division

Presentation

Operator

Welcome to the Stanley Black & Decker Second Quarter Earnings Call. My name is Shannon, and I'll be your operator for today's call. [Operator Instructions] Please note that this conference is being recorded.

I will now turn the call over to Vice President of Investor Relations, Michael Wherley. Mr. Wherley, you may begin.

Michael Wherley
Vice President of Investor Relations

Good morning, everyone, and thanks for joining us for our second quarter earnings call. With us today are Chris Nelson, President and CEO; and Patrick Hallinan, Executive Vice President, CFO and Chief Administrative Officer. Our earnings release, which was issued earlier this morning and a supplemental presentation, which we will refer to, are available on the IR section of our website. A replay of today's webcast will also be available beginning around 11:00 a.m. Eastern Time. This morning, Chris and Pat will review our second quarter results along with our updated outlook for 2026, followed by a Q&A session.

During today's call, we will be making some forward-looking statements based on our current views. Such statements are based on assumptions of future events that may not prove to be accurate, and as such, they involve risk and uncertainty. It's therefore possible that actual results may differ materially from any forward-looking statements that we might make today. We

Stanley Black & Decker (SWK - Free Report) came out with quarterly earnings of $1.57 per share, beating the Zacks Consensus Estimate of $1.2 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of +30.83%. A quarter ago, it was expected that this tool company would post earnings of $0.61 per share when it actually produced earnings of $0.8, delivering a surprise of +31.15%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Stanley Black & Decker, which belongs to the Zacks Manufacturing - Tools & Related Products industry, posted revenues of $3.96 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.71%. This compares to year-ago revenues of $3.95 billion. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Stanley Black & Decker shares have added about 26.8% since the beginning of the year versus the S&P 500's gain of 8.5%.

What's Next for Stanley Black & Decker?While Stanley Black & Decker has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Stanley Black & Decker was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.66 on $3.68 billion in revenues for the coming quarter and $5.35 on $15.15 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Manufacturing - Tools & Related Products is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Kennametal (KMT - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 5.

This engineered products maker is expected to post quarterly earnings of $1.62 per share in its upcoming report, which represents a year-over-year change of +376.5%. The consensus EPS estimate for the quarter has been revised 153.3% higher over the last 30 days to the current level.

Kennametal's revenues are expected to be $719.89 million, up 39.4% from the year-ago quarter.

On Track to Achieve Full Year Sales and Margin Targets

2Q Earnings and Margin Growth Include Benefit from Tariff Refunds

Raises 2026 EPS and Free Cash Flow Guidance

Reduced Debt by $1.7B and Executed $250M of Share Repurchases in 2Q

, /PRNewswire/ -- Stanley Black & Decker (NYSE: SWK), a global leader in tools and outdoor solutions, today announced second quarter 2026 financial results.

Second Quarter 2026 Highlights

Net sales of $4.0 billion, in-line with prior year and up 3% on an organic basis* Gross margin of 33.0%, up 600 basis points versus prior year; adjusted gross margin* of 33.7%, up 620 basis points versus prior year; both included a benefit of roughly 250 basis points from net tariff refunds1  EPS of $2.33; adjusted EPS* of $1.57; both included a benefit of approximately $0.17 from net tariff refunds1  Cash from operating activities was $763 million and free cash flow* was $698 million Successfully completed the sale of Consolidated Aerospace Manufacturing ('CAM') in April, which supported debt reduction and capital allocation priorities including share repurchases   Chris Nelson, Stanley Black & Decker's President & CEO, commented, "The Stanley Black & Decker team is committed to executing our strategy and delivering profitable, organic growth. Our second quarter sales, gross margin, and cash performance keep us firmly on track to achieve our full-year targets2. We further strengthened the balance sheet and executed on our capital deployment strategy. In addition, the tariff refunds are supporting incremental growth investments.

"We are confident in our path forward and our ability to navigate the external environment to deliver our long-term financial goals. Through disciplined execution of our strategic priorities, we are strengthening Stanley Black & Decker's ability to deliver sustainable, profitable growth and create long-term value for our shareholders."

1 Includes IEEPA tariff refund gain partially offset by directly attributable variable incentive compensation costs, growth investments, and taxes (for EPS only)

2 Refer to "2026 Guidance" on page 3 for further discussion and details of underlying planning assumptions

* Non-GAAP financial measure as further defined on page 5

2Q 2026 Results (all comparisons versus prior year)

Net sales of $4.0 billion, in-line with prior year, as higher volume (+3%) and currency tailwinds (+1%) were offset by the CAM divestiture and the previously announced strategic transition to a licensing model for the gas walk-behind outdoor products. Pricing was flat. The volume strength was primarily driven by U.S. retail and commercial and industrial ('C&I') channels in Tools & Outdoor. Gross margin of 33.0%, up 600 basis points; Adjusted gross margin* of 33.7%, up 620 basis points; both included an approximate 250 basis point benefit from net tariff refunds1. SG&A expenses of 23.9% of sales, up 180 basis points; Adjusted SG&A expenses* of 23.9%, up 310 basis points; both increases were predominantly due to incremental costs and investments tied to tariff refunds received.  The tax rate was 29.6% and the adjusted tax rate* was 15.1%. Net earnings were 8.9% of sales, an increase of 630 basis points. EBITDA margin* was 17.4%, an increase of 1140 basis points, and adjusted EBITDA margin* was 11.3%, an increase of 320 basis points. 2Q 2026 Segment Results

 ($ in M)

Sales

Segment
Profit

Charges3

Adj. Segment
Profit*

Segment
Margin

Adj. Segment
Margin*

Tools &
Outdoor

$3,564

$389.0

$30.5

$419.5

10.9 %

11.8 %

Engineered
Fastening

$396

$51.6

$0.1

$51.7

13.0 %

13.0 %

3 See Non-GAAP adjustments on page 14.

1 Includes IEEPA tariff refund gain partially offset by directly attributable variable incentive compensation costs, growth investments, and taxes (for EPS only)

* Non-GAAP financial measure as further defined on page 5

Tools & Outdoor net sales were up 3% year over year, as higher volume (+3%) and currency tailwinds (+1%) were partially offset by the previously announced strategic transition to a licensing model for the gas walk-behind outdoor products (-1%). Pricing was flat. Organic revenue* increased 3%, primarily driven by power tools strength in U.S. retail and C&I channels. North America sales were up 3% on a total basis and up 4% organically*, Europe was flat on a total basis and down 2% organically*, while the Rest of World was up 8% on a total basis and up 3% organically*. The Tools & Outdoor segment margin was 10.9%, up 400 basis points year over year. Adjusted segment margin* was 11.8%, up 380 basis points year over year. Segment margin improvement reflected net productivity gains and favorable product mix. In addition, the net tariff refunds1 raised segment margin by approximately 150 basis points.

Engineered Fastening net sales were down 18% year over year, due to the CAM divestiture (-21%), which was partially offset by volume (+2%) and pricing (+1%), while currency was flat.  Organic revenues* were up 3%, driven by industrial strength, as well as continued automotive fasteners growth. The Engineered Fastening segment margin was 13.0%, up 580 basis points year over year, and adjusted segment margin* was 13.0%, up 220 basis points year over year. Year-over-year segment margin expansions were largely driven by net productivity improvements and favorable automotive volume and mix. In addition, the net tariff refunds1 raised segment margin by approximately 50 basis points.

Capital Deployment Update

During the quarter, the Company reduced debt by $1.7 billion and repurchased approximately 3.2 million shares for $250 million, under the previously announced authorization approved by the Board of Directors in April 2026. 

Patrick Hallinan, EVP, Chief Financial Officer & Chief Administrative Officer, commented, "We delivered solid second quarter performance, and are on track to deliver on our full year sales and margin targets2. We remain focused on executing our strategy and progressing our priorities, while navigating the dynamic operating environment. Successfully closing the CAM divestiture at the start of the quarter enhanced our financial strength, affording the ability to invest in growth, reduce debt, support the dividend, and repurchase our shares.

"As we look ahead, we remain committed to delivering our near-term and long-term growth, margin, and cash flow objectives, while thoughtfully allocating capital to accelerate shareholder value creation."

2026 Guidance

The Company is raising 2026 GAAP EPS to be in the range of $4.60 to $5.45, from a prior range of $4.15 to $5.35. The Company is also raising and tightening the adjusted EPS* range to $5.20 to $5.80, from a prior range of $4.90 to $5.70. These ranges represent year over year growth of 90% and 18%, respectively, at the midpoint of each range as compared to 2025 performance. Free cash flow* is now expected to be in the range of $600 to $800 million, revised from $500 to $700 million, which incorporates the tariff refund realized in the second quarter and projected taxes and fees associated with the CAM divestiture. The Company will discuss underlying assumptions on the earnings call.

The difference between the GAAP and Adjusted EPS* assumption range is approximately $0.35 to $0.60, consisting primarily of charges related to footprint actions and other cost actions, largely offset by the gain on the sale of the CAM business. 

1 Includes IEEPA tariff refund gain partially offset by directly attributable variable incentive compensation costs, growth investments, and taxes (for EPS only)

2 Refer to "2026 Guidance" on page 3 for further discussion and details of underlying planning assumptions

* Non-GAAP financial measure as further defined on page 5

2Q 2026 Non-GAAP Adjustments

Total pre-tax non-GAAP adjustments in the second quarter was a gain of $221.3 million.  The Company recognized a $273.7 million gain on the sale of businesses, largely related to the CAM divestiture, which was partially offset by other non-GAAP adjustments primarily associated with footprint actions and restructuring costs. Gross profit and SG&A included $28.7 million and $3.0 million of charges, respectively, while Other-net included a net charge of $0.3 million. The Company also recorded restructuring charges of $15.1 million and an asset impairment charge of $5.3 million.  

Earnings Webcast

Stanley Black & Decker will host a webcast with investors today, July 29, 2026, at 8:00 am ET. The call will be available through a live teleconference and a listen-only webcast.  

Direct links to register for the teleconference, access the webcast, and view the accompanying slide presentation will be available on the Stanley Black & Decker Investors website (www.stanleyblackanddecker.com/investors), under "Events." A replay will be available in the same location approximately two hours after the call.

1 Includes IEEPA tariff refund gain partially offset by directly attributable variable incentive compensation costs, growth investments, and taxes (for EPS only)

2 Refer to "2026 Guidance" on page 3 for further discussion and details of underlying planning assumptions

* Non-GAAP financial measure as further defined on page 5

About Stanley Black & Decker

Founded in 1843 and headquartered in the USA, Stanley Black & Decker (NYSE: SWK) is a worldwide leader in Tools and Outdoor, operating manufacturing facilities globally. The Company's approximately 41,000 employees produce innovative end-user inspired power tools, hand tools, storage, digital jobsite solutions, outdoor and lifestyle products, and engineered fasteners to support the world's builders, tradespeople and DIYers. The Company's world class portfolio of trusted brands includes DEWALT®, CRAFTSMAN®, STANLEY®, BLACK+DECKER®, and Cub Cadet®. To learn more visit: www.stanleyblackanddecker.com or follow Stanley Black & Decker on Facebook, Instagram, LinkedIn and X.

Investor Contacts:
Michael Wherley
Vice President, Investor Relations
[email protected]
(860) 827-3833

Christina Francis
Senior Director, Investor Relations
[email protected]
(860) 438-3470

Media Contacts:
Debora Raymond
Vice President, Public Relations
[email protected] 
(203) 640-8054

Non-GAAP Financial Measures

Organic revenue or organic sales is defined as the difference between total current and prior year sales less the impact of companies acquired and divested in the past twelve months, foreign currency fluctuations, transfers of product lines between segments, and the strategic transition to a licensing model for gas walk-behind outdoor product lines (as previously communicated). Organic revenue growth, organic sales growth or organic growth is organic revenue or organic sales divided by prior year sales. Gross profit is defined as sales less cost of sales. Gross margin is gross profit as a percent of sales. Segment profit is defined as sales less cost of sales and selling, general and administrative ("SG&A") expenses (aside from corporate overhead expense). Segment margin is segment profit as a percent of sales. EBITDA is earnings before interest, taxes, depreciation and amortization. EBITDA margin is EBITDA as a percent of sales. Gross profit, gross margin, SG&A, segment profit, segment margin, earnings, EBITDA and EBITDA margin are adjusted for certain gains and charges, such as costs related to supply chain transformation and footprint actions, asset impairments, voluntary retirement program costs, divestiture-related items, restructuring, gains or losses on sales of businesses, and other adjusting items. Income taxes attributable to Non-GAAP adjustments are determined by calculating income taxes on pre-tax earnings, both inclusive and exclusive of Non-GAAP adjustments, taking into consideration the nature of the Non-GAAP adjustments and the applicable statutory income tax rates.

Management uses these metrics as key measures to assess the performance of the Company as a whole, as well as the related measures at the segment level. Adjusted earnings per share or adjusted EPS, is diluted GAAP EPS excluding certain gains and charges. Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important indicator of its liquidity, as well as its ability to fund future growth and to provide a return to the shareowners and is useful information for investors. Free cash flow does not include deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company's common stock and business acquisitions, among other items. Free cash flow conversion is defined as free cash flow divided by net income. Net debt to adjusted EBITDA is total debt less cash on hand divided by adjusted EBITDA. The Non-GAAP financial measures are reconciled to GAAP on pages 12 through 17 and in the appendix to the earnings conference call slides available at http://www.stanleyblackanddecker.com/investors. The Company considers the use of the Non-GAAP financial measures above relevant to aid analysis and understanding of the Company's results, business trends and outlook measures aside from the material impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods.

The Company provides expectations for the non-GAAP financial measures of full year 2026 adjusted EPS, presented on a basis excluding certain gains and charges, as well as 2026 free cash flow. Forecasted full-year 2026 adjusted EPS is reconciled to forecasted full-year 2026 GAAP EPS under "2026 Guidance". Consistent with past methodology, the forecasted full-year 2026 GAAP EPS excludes the impacts of potential acquisitions and divestitures (unless otherwise noted), future regulatory changes or strategic shifts that could impact the Company's contingent liabilities or intangible assets, respectively, potential future cost actions in response to external factors that have not yet occurred, and any other items not specifically referenced under "2026 Guidance". A reconciliation of forecasted free cash flow to its most directly comparable GAAP estimate is not available without unreasonable effort due to high variability and difficulty in predicting items that impact cash flow from operations, which could be material to the Company's results in accordance with U.S. GAAP. The Company believes such a reconciliation would also imply a degree of precision that is inappropriate for this forward-looking measure.

The Company may also provide multi-year strategic goals for the non-GAAP financial measures of adjusted gross margin and net debt to adjusted EBITDA, presented on a basis excluding certain gains and charges. A reconciliation for these non-GAAP measures is not available without unreasonable effort due to the inherent difficulty of forecasting the timing and/or amount of various items that have not yet occurred, including the high variability and low visibility with respect to certain gains or charges that would generally be excluded from non-GAAP financial measures and which could be material to the Company's results in accordance with U.S. GAAP. Additionally, estimating such GAAP measures and providing a meaningful reconciliation consistent with the Company's accounting policies for future periods requires a level of precision that is unavailable for these future multi-year periods and cannot be accomplished without unreasonable effort. The Company believes such a reconciliation would also imply a degree of precision that is inappropriate for these forward-looking measures.

CAUTIONARY STATEMENT
CONCERNING FORWARD-LOOKING STATEMENTS

This document contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including, but not limited to, any goals, projections, guidance or planning assumptions or scenarios; any statements of the plans, strategies and objectives of management for future operations, including expectations around productivity and efficiency goals and future operational strategies; any statements regarding future economic conditions or performance; any statements concerning future dividends or share repurchases; any statements and assumptions or scenarios regarding possible tariff and tariff impact projections, including those relating to Section 122, 232 or 301 tariffs, tariff refunds and related mitigation plans (including price actions, supply chain adjustments and expected timing and benefits related to such plans); and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include, among others, the words "may," "will," "estimate," "intend," "could," "project," "plan," "continue," "believe," "expect," "anticipate", "annualized", "forecast", "commit", "goal", "target", "design", "on track", "position or positioning", "guidance," "aim," "looking forward," "multi-year" or any other similar words.  Although the Company believes that the expectations reflected in any of its forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of its forward-looking statements. The Company's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in the Company's filings with the Securities and Exchange Commission.

Important factors that could cause the Company's actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in its forward-looking statements include, among others, the following: (i) successfully developing, marketing and achieving sales from new products and services and the continued acceptance of current products and services as well as successful execution of, and realization of expected benefits from, the Company's brand prioritization and investment strategy; (ii) macroeconomic factors, including global and regional business conditions, commodity availability and prices, inflation and deflation, interest rate volatility, currency exchange rates, and uncertainties in the global financial markets; (iii) laws, regulations and governmental policies affecting the Company's activities in the countries where it does business or sources supply inputs, including those related to, taxation, data privacy, anti-bribery, anti-corruption, government contracts, and trade controls, including but not limited to, tariffs, import and export controls, raw material and rare earth related controls and other monetary and non-monetary trade regulations or barriers; (iv) the Company's ability to predict the timing and extent of any trade related regulations (or any court rulings in response thereto), clearances, restrictions or policies, including but not limited to, trade barriers, tariffs, raw material and rare earth related controls,  as well as its ability to successfully assess the impact to its business of, and mitigate or respond to, such macroeconomic or trade, tariff and raw material and rare earth import/export control changes, regulations or policies (including, but not limited to, the Company's ability to predict and respond to court rulings in response thereto, to obtain any tariff refunds in amounts or within timeframes that would meaningfully offset the impact of tariffs on the Company's business, or to obtain price increases from its customers and complete effective supply chain adjustments within anticipated time frames and ability to obtain rare earth related supply clearances); (v) realizing the anticipated benefits of mergers, acquisitions, joint ventures, strategic alliances or divestitures and the costs associated with such transactions; (vi) pricing pressure and other changes within competitive markets; (vii) availability and price of raw materials, rare earth materials, component parts, freight, energy, labor and sourced finished goods; (vii) potential business, supply chain and distribution disruptions, including those related to physical security threats, information technology or cyber-attacks, epidemics, natural disasters or pandemics, sanctions, political unrest, war or terrorism, including the conflicts between Russia and Ukraine, and Israel and Hamas, and tensions or conflicts in South Korea, China, Taiwan and the Middle East (including the ongoing conflict in Iran); (viii) potential adverse developments in new or pending litigation and/or government investigations;  (ix) potential regulatory liabilities, including environmental, privacy, data breach, workers compensation and product liabilities; (x) failure to realize the expected benefits of the Company's value creation, debt reduction and capital allocation strategy; (xi) and the other factors set forth in the Annual Report on Form 10-K and in the Quarterly Reports on Form 10-Q, including under the headings "Risk Factors," and "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in the Consolidated Financial Statements and the related Notes, and other filings with the Securities and Exchange Commission.

Forward-looking statements, and the factors that could cause actual results to differ materially from those forward-looking statements, in this press release speak only as of the date hereof, and forward-looking statements in documents that are incorporated by reference herein speak only as of the date of those documents. The Company does not undertake any obligation or intention to update or revise any forward-looking statements, except as required by law.

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited, Millions of Dollars Except Per Share Amounts)

SECOND QUARTER

YEAR-TO-DATE

2026

2025

2026

2025

NET SALES

$             3,960.7

$          3,945.2

$        7,807.1

$          7,689.8

COSTS AND EXPENSES

Cost of sales

2,654.9

2,878.7

5,344.0

5,502.5

Gross profit

1,305.8

1,066.5

2,463.1

2,187.3

% of Net Sales

33.0 %

27.0 %

31.5 %

28.4 %

Selling, general and administrative

947.9

873.1

1,831.9

1,740.1

% of Net Sales

23.9 %

22.1 %

23.5 %

22.6 %

Other - net

52.9

67.7

94.8

115.2

(Gain) loss on sales of businesses

(273.7)

-

(270.6)

0.3

Asset impairment charges

5.3

-

28.0

-

Restructuring charges 

15.1

18.8

60.0

20.0

Income from operations

558.3

106.9

719.0

311.7

Interest - net

59.3

80.2

135.2

157.4

 EARNINGS BEFORE INCOME TAXES

499.0

26.7

583.8

154.3

Income taxes

147.7

(75.2)

172.9

(38.0)

NET EARNINGS 

$                 351.3

$             101.9

$           410.9

$             192.3

EARNINGS PER SHARE OF COMMON STOCK

Basic

$                   2.34

$               0.67

$             2.72

$               1.27

Diluted

$                   2.33

$               0.67

$             2.71

$               1.27

DIVIDENDS PER SHARE OF COMMON STOCK

$                   0.83

$               0.82

$             1.66

$               1.64

WEIGHTED-AVERAGE SHARES OUTSTANDING (in thousands)

Basic

150,130

151,231

150,800

151,122

Diluted

150,648

151,728

151,401

151,711

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS 

 (Unaudited, Millions of Dollars)

July 4,

January 3,

2026

2026

ASSETS

Cash and cash equivalents

$                     592.4

$                       280.1

Accounts and notes receivable, net

1,471.0

919.7

Inventories, net

3,896.5

4,157.1

Current assets held for sale

-

262.4

Other current assets

383.8

359.7

           Total current assets

6,343.7

5,979.0

Property, plant and equipment, net

1,707.5

1,831.8

Goodwill and other intangibles, net

10,289.4

10,374.8

Long-term assets held for sale

-

1,273.9

Other assets

1,752.9

1,784.2

           Total assets

$                20,093.5

$                  21,243.7

LIABILITIES AND SHAREOWNERS' EQUITY

Short-term borrowings

$                            -

$                       605.6

Current maturities of long-term debt

53.7

554.8

Accounts payable

2,422.3

2,163.0

Accrued expenses

1,953.1

1,878.1

Current liabilities held for sale

-

44.2

           Total current liabilities

4,429.1

5,245.7

Long-term debt

4,704.2

4,703.3

Long-term liabilities held for sale

-

9.4

Other long-term liabilities

2,001.4

2,230.7

Shareowners' equity

8,958.8

9,054.6

           Total liabilities and shareowners' equity

$                20,093.5

$                  21,243.7

  STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

SUMMARY OF CASH FLOW ACTIVITY

 (Unaudited, Millions of Dollars)

SECOND QUARTER

YEAR-TO-DATE

2026

2025

2026

2025

OPERATING ACTIVITIES

Net earnings

$                  351.3

$                    101.9

$                  410.9

$                    192.3

Depreciation

101.8

92.7

186.2

183.8

Amortization

27.6

37.4

56.2

74.7

(Gain) loss on sales of businesses

(273.7)

-

(270.6)

0.3

Asset impairment charges

5.3

-

28.0

-

Changes in working capital1

282.1

127.6

(106.7)

(341.4)

Other

268.7

(145.3)

70.3

(315.4)

Net cash provided by (used in) operating activities

763.1

214.3

374.3

(205.7)

INVESTING AND FINANCING ACTIVITIES

Capital and software expenditures

(64.9)

(79.6)

(123.4)

(144.6)

Proceeds from sales of businesses, net of cash sold

1,814.6

-

1,814.7

5.0

Payments on long-term debt

-

(0.3)

(500.1)

(500.3)

Net short-term commercial paper (repayments) borrowings

(1,750.2)

(98.2)

(604.8)

1,038.0

Purchases of common stock for treasury

(252.1)

(0.8)

(267.4)

(12.5)

Cash settlement on forward stock purchase contract

(125.0)

-

(125.0)

-

Cash dividends on common stock

(124.3)

(124.0)

(250.3)

(248.5)

Other 

4.0

12.7

11.1

17.0

Net cash (used in) provided by investing and financing activities

(497.9)

(290.2)

(45.2)

154.1

Effect of exchange rate changes on cash

(5.6)

42.6

(12.5)

74.1

Increase (decrease) in cash, cash equivalents and restricted cash

259.6

(33.3)

316.6

22.5

Cash, cash equivalents and restricted cash, beginning of period

344.4

348.6

287.4

292.8

Cash, cash equivalents and restricted cash, end of period

$                  604.0

$                    315.3

$                  604.0

$                    315.3

Free Cash Flow Computation2

Net cash provided by (used in) operating activities

$                  763.1

$                    214.3

$                  374.3

$                  (205.7)

Less: capital and software expenditures

(64.9)

(79.6)

(123.4)

(144.6)

Free cash flow (before dividends)

$                  698.2

$                    134.7

$                  250.9

$                  (350.3)

Reconciliation of Cash, Cash Equivalents and Restricted Cash

July 4,
 2026

January 3,
 2026

Cash and cash equivalents

$                  592.4

$                    280.1

Restricted cash included in Other current assets

11.6

7.3

Cash, cash equivalents and restricted cash

$                  604.0

$                    287.4

1

Working capital is comprised of accounts receivable, inventory, accounts payable and deferred revenue.

2

Free cash flow is defined as cash flow from operations less capital and software expenditures. Management considers free cash flow an important measure of its
liquidity, as well as its ability to fund future growth and to provide a return to the shareowners, and is useful information for investors. Free cash flow does not include
deductions for mandatory debt service, other borrowing activity, discretionary dividends on the Company's common stock and business acquisitions, among other items. 

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

BUSINESS SEGMENT INFORMATION

(Unaudited, Millions of Dollars)

SECOND QUARTER

YEAR-TO-DATE

2026

2025

2026

2025

NET SALES

Tools & Outdoor

$               3,564.3

$                 3,461.4

$               6,899.9

$                 6,742.3

Engineered Fastening1

396.4

483.8

907.2

947.5

    Total

$               3,960.7

$                 3,945.2

$               7,807.1

$                 7,689.8

SEGMENT PROFIT2

Tools & Outdoor

$                  389.0

$                    238.1

$                  665.0

$                    527.3

Engineered Fastening1

$                    51.6

$                      35.0

$                  112.5

$                      74.0

CORPORATE OVERHEAD2

$                   (82.7)

$                     (79.7)

$                 (146.3)

$                   (154.1)

Segment Profit as a Percentage of Net Sales

Tools & Outdoor

10.9 %

6.9 %

9.6 %

7.8 %

Engineered Fastening1

13.0 %

7.2 %

12.4 %

7.8 %

1

On April 6, 2026, the Company completed the previously announced sale of its Consolidated Aerospace Manufacturing
("CAM") business. Based on management's commitment to sell this business, the assets and liabilities related to CAM were
classified as held for sale on the Company's Condensed Consolidated Balance Sheets as of January 3, 2026.  For the three months
ended July 4, 2026, the net sales and segment profit for Engineered Fastening did not include results of the CAM business. For the
six months ended July 4, 2026, net sales and segment profit for Engineered Fastening included $117.0 million and $22.0 million,
respectively, related to the CAM business.

2

Segment profit is defined as net sales minus cost of sales and SG&A (aside from corporate overhead expenses). The corporate
overhead element of SG&A, which is not allocated to the business segments for purposes of determining segment profit, consists
of the costs associated with the executive management team and expenses related to centralized functions that benefit the entire
Company but are not directly attributable to the business segments, such as legal and corporate finance functions, as well as
expenses for the world headquarters facility.

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES

(Unaudited, Millions of Dollars Except Per Share Amounts)

SECOND QUARTER 2026

GAAP

Non-GAAP
Adjustments

Non-GAAP1

Gross profit

$               1,305.8

$                     28.7

$                    1,334.5

% of Net Sales

33.0 %

33.7 %

Selling, general and administrative

947.9

(3.0)

944.9

% of Net Sales

23.9 %

23.9 %

Earnings before income taxes

499.0

(221.3)

277.7

Income taxes2

147.7

(105.7)

42.0

Net earnings 

351.3

(115.6)

235.7

Diluted earnings per share of common stock

$                     2.33

$                   (0.76)

$                          1.57

SECOND QUARTER 2025

GAAP

Non-GAAP
Adjustments

Non-GAAP1

Gross profit

$                 1,066.5

$                      20.0

$                      1,086.5

% of Net Sales

27.0 %

27.5 %

Selling, general and administrative

873.1

(52.6)

820.5

% of Net Sales

22.1 %

20.8 %

Earnings before income taxes

26.7

83.0

109.7

Income taxes2

(75.2)

21.8

(53.4)

Net earnings 

101.9

61.2

163.1

Diluted earnings per share of common stock

$                      0.67

$                      0.41

$                           1.08

1

The Non-GAAP 2026 and 2025 information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of the
Company's results and business trends aside from the material impact of certain gains and charges and ensures appropriate comparability to
operating results of prior periods. See further detail on Non-GAAP adjustments on page 16.

2

Income taxes attributable to Non-GAAP adjustments are determined by calculating income taxes on pre-tax earnings, both inclusive and
exclusive of Non-GAAP adjustments, taking into consideration the nature of the Non-GAAP adjustments and the applicable statutory income
tax rates.

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS FINANCIAL MEASURES TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES

(Unaudited, Millions of Dollars Except Per Share Amounts)

YEAR-TO-DATE 2026

GAAP

Non-GAAP
Adjustments

Non-GAAP1

Gross profit

$               2,463.1

$                33.9

$                    2,497.0

% of Net Sales

31.5 %

32.0 %

Selling, general and administrative

1,831.9

(10.7)

1,821.2

% of Net Sales

23.5 %

23.3 %

Earnings before income taxes

583.8

(140.3)

443.5

Income taxes2

172.9

(87.3)

85.6

Net earnings 

410.9

(53.0)

357.9

Diluted earnings per share of common stock

$                     2.71

$               (0.35)

$                          2.36

YEAR-TO-DATE 2025

GAAP

Non-GAAP
Adjustments

Non-GAAP1

Gross profit

$                 2,187.3

$                  36.7

$                      2,224.0

% of Net Sales

28.4 %

28.9 %

Selling, general and administrative

1,740.1

(74.6)

1,665.5

% of Net Sales

22.6 %

21.7 %

Earnings before income taxes

154.3

114.5

268.8

Income taxes2

(38.0)

29.3

(8.7)

Net earnings 

192.3

85.2

277.5

Diluted earnings per share of common stock

$                      1.27

$                  0.56

$                           1.83

1

The Non-GAAP 2026 and 2025 information, as reconciled to GAAP above, is considered relevant to aid analysis and understanding of
the Company's results and business trends aside from the material impact of certain gains and charges and ensures appropriate
comparability to operating results of prior periods. See further detail on Non-GAAP adjustments on page 16.

2

Income taxes attributable to Non-GAAP adjustments are determined by calculating income taxes on pre-tax earnings, both inclusive and
exclusive of Non-GAAP adjustments, taking into consideration the nature of the Non-GAAP adjustments and the applicable statutory
income tax rates.

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES

(Unaudited, Millions of Dollars)

SECOND QUARTER 2026

GAAP

Non-GAAP
Adjustments1

Non-GAAP2

SEGMENT PROFIT

Tools & Outdoor

$                   389.0

$                      30.5

$                   419.5

Engineered Fastening

$                     51.6

$                        0.1

$                     51.7

CORPORATE OVERHEAD

$                    (82.7)

$                        1.1

$                    (81.6)

Segment Profit as a Percentage of Net Sales

Tools & Outdoor

10.9 %

11.8 %

Engineered Fastening

13.0 %

13.0 %

SECOND QUARTER 2025

GAAP

Non-GAAP
Adjustments1

Non-GAAP2

SEGMENT PROFIT

Tools & Outdoor

$                     238.1

$                       38.4

$                     276.5

Engineered Fastening

$                       35.0

$                       17.3

$                       52.3

CORPORATE OVERHEAD

$                      (79.7)

$                       16.9

$                      (62.8)

Segment Profit as a Percentage of Net Sales

Tools & Outdoor

6.9 %

8.0 %

Engineered Fastening

7.2 %

10.8 %

1

The 2026 Non-GAAP adjustments for the Tools & Outdoor segment relate primarily to footprint actions. The 2025 Non-GAAP
adjustments for the business segments relate primarily to separation benefit costs associated with a voluntary retirement
program as well as footprint actions and other costs associated with the supply chain transformation. The 2025 Non-GAAP
adjustments for Corporate overhead primarily consist of voluntary retirement program costs and transition services costs
related to previously divested businesses. See further discussion on page 16.

2

The Non-GAAP 2026 and 2025 business segment and corporate overhead information, as reconciled to GAAP above, is
considered relevant to aid analysis and understanding of the Company's results and business trends aside from the material
impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods.

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP SEGMENT PROFIT FINANCIAL MEASURES TO CORRESPONDING

NON-GAAP FINANCIAL MEASURES

(Unaudited, Millions of Dollars)

YEAR-TO-DATE 2026

GAAP

Non-GAAP
Adjustments1

Non-GAAP2

SEGMENT PROFIT

Tools & Outdoor

$                   665.0

$                      43.1

$                   708.1

Engineered Fastening

$                   112.5

$                        0.3

$                   112.8

CORPORATE OVERHEAD

$                  (146.3)

$                        1.2

$                  (145.1)

Segment Profit as a Percentage of Net Sales

Tools & Outdoor

9.6 %

10.3 %

Engineered Fastening

12.4 %

12.4 %

YEAR-TO-DATE 2025

GAAP

Non-GAAP
Adjustments1

Non-GAAP2

SEGMENT PROFIT

Tools & Outdoor

$                     527.3

$                       63.4

$                     590.7

Engineered Fastening

$                       74.0

$                       25.0

$                       99.0

CORPORATE OVERHEAD

$                    (154.1)

$                       22.9

$                    (131.2)

Segment Profit as a Percentage of Net Sales

Tools & Outdoor

7.8 %

8.8 %

Engineered Fastening

7.8 %

10.4 %

1

The 2026 Non-GAAP adjustments for the Tools & Outdoor segment relate primarily to footprint actions. The 2025 Non-GAAP
adjustments for the business segments relate primarily to separation benefit costs associated with a voluntary retirement
program as well as footprint actions and other costs associated with the supply chain transformation. The 2025 Non-GAAP
adjustments for Corporate overhead primarily consist of voluntary retirement program costs and transition services costs
related to previously divested businesses. See further discussion on page 16.

2

The Non-GAAP 2026 and 2025 business segment and corporate overhead information, as reconciled to GAAP above, is
considered relevant to aid analysis and understanding of the Company's results and business trends aside from the material
impact of certain gains and charges and ensures appropriate comparability to operating results of prior periods.

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP EARNINGS TO EBITDA

(Unaudited, Millions of Dollars)

SECOND QUARTER

YEAR-TO-DATE

2026

2025

2026

2025

Net earnings

$             351.3

$               101.9

$             410.9

$               192.3

% of Net Sales

8.9 %

2.6 %

5.3 %

2.5 %

Interest - net

59.3

80.2

135.2

157.4

Income taxes

147.7

(75.2)

172.9

(38.0)

Depreciation

101.8

92.7

186.2

183.8

Amortization

27.6

37.4

56.2

74.7

EBITDA1

$             687.7

$               237.0

$             961.4

$               570.2

% of Net Sales

17.4 %

6.0 %

12.3 %

7.4 %

Non-GAAP adjustments before income taxes

(221.3)

83.0

(140.3)

114.5

Less: Accelerated depreciation included in Non-GAAP adjustments before income taxes

20.7

1.8

20.7

4.7

Adjusted EBITDA1

$             445.7

$               318.2

$             800.4

$               680.0

% of Net Sales

11.3 %

8.1 %

10.3 %

8.8 %

SUMMARY OF NON-GAAP ADJUSTMENTS BEFORE INCOME TAXES

(Unaudited, Millions of Dollars)

SECOND QUARTER

YEAR-TO-DATE

2026

2025

2026

2025

Supply Chain Transformation Costs: 

Footprint Rationalization2

$               29.0

$                   5.4

$               34.2

$                 12.0

Material Productivity & Operational Excellence

-

3.3

-

8.0

Voluntary retirement program3

(0.5)

11.9

(0.5)

11.9

Other charges 

0.2

(0.6)

0.2

4.8

Gross profit

$               28.7

$                 20.0

$               33.9

$                 36.7

Supply Chain Transformation Costs: 

Footprint Rationalization2

$                  2.3

$                   5.0

$                 8.9

$                 11.1

Complexity Reduction & Operational Excellence4

-

10.5

-

20.5

Transition services costs related to previously divested businesses

1.9

3.1

1.9

8.4

Voluntary retirement program3

(2.7)

33.5

(2.7)

33.5

Other charges

1.5

0.5

2.6

1.1

Selling, general and administrative

$                  3.0

$                 52.6

$               10.7

$                 74.6

Income related to providing transition services to previously divested businesses

$                 (1.9)

$                  (3.5)

$                (1.9)

$                (10.3)

Voluntary retirement program3

-

6.2

-

6.2

Deal-related costs and other5

2.2

(11.1)

(0.4)

(13.0)

Other, net

$                  0.3

$                  (8.4)

$                (2.3)

$                (17.1)

(Gain) loss on sales of businesses

$             (273.7)

$                       -

$            (270.6)

$                   0.3

Asset impairment charges6

5.3

-

28.0

-

Restructuring charges 

15.1

18.8

60.0

20.0

Non-GAAP adjustments before income taxes

$             (221.3)

$                 83.0

$            (140.3)

$               114.5

1

EBITDA is earnings before interest, taxes, depreciation and amortization. Adjusted EBITDA represents EBITDA excluding certain gains and charges, as summarized above.
EBITDA and Adjusted EBITDA, both Non-GAAP measures, are considered relevant to aid analysis and understanding of the Company's operating results and ensures
appropriate comparability to prior periods.

2

Footprint Rationalization costs in 2026 primarily relate to accelerated depreciation of manufacturing equipment driven by plants closed in the second quarter of 2026, as well
as site transformation and re-configuration costs. Footprint Rationalization costs in 2025 primarily relate to site transformation and re-configuration costs. Facility exit costs
related to site closures are reported in Restructuring charges.

3

In June 2025, the Company implemented a voluntary retirement program ("VRP") to right-size the Company's corporate and support functions to align with a more focused
portfolio following recent divestitures and more streamlined operations as part of the supply chain transformation. The costs associated with the VRP relate to separation
benefits provided to eligible employees who voluntarily retired from the Company.

4

Complexity Reduction & Operational Excellence costs in 2025 primarily related to third-party consulting fees to provide expertise in identifying business model changes and
quantifying related cost savings opportunities within the Company's Engineered Fastening business, developing a detailed program and related governance, and assisting
the Company with the implementation of actions necessary to achieve the identified objectives.

5

Includes an $8.1 million gain on sale of a distribution center in the second quarter of 2025 as part of the supply chain transformation.

6

Asset impairment charges in 2026 relate to the write-down of assets associated with the exit of a Tools and Outdoor product line and related plant closure.

STANLEY BLACK & DECKER, INC. AND SUBSIDIARIES

RECONCILIATION OF GAAP REVENUE GROWTH TO NON-GAAP ORGANIC GROWTH

(Unaudited)

SECOND QUARTER 2026

GAAP
Revenue
Growth

Less:
Acquisitions

Plus:
Divestitures

Less:
Product Line
Transfer

Less:
Strategic
Outdoor
Product Line
Transition

Less:
Currency

Non-GAAP
Organic
Growth1

Stanley Black & Decker 

- %

- %

3 %

- %

-1 %

1 %

3 %

Tools & Outdoor 

3 %

- %

- %

- %

-1 %

1 %

3 %

     North America

3 %

- %

- %

- %

-1 %

- %

4 %

     Europe

- %

- %

- %

- %

- %

2 %

-2 %

     Rest of World

8 %

- %

- %

- %

- %

5 %

3 %

Engineered Fastening

-18 %

- %

21 %

- %

- %

- %

3 %

1

Non-GAAP Organic Growth, as reconciled to GAAP Revenue Growth above, is utilized to describe the change in the Company's net sales excluding the impacts of
foreign currency fluctuations, acquisitions during their initial 12 months of ownership, divestitures, transfers of product lines between segments, and the strategic
transition to a licensing model for gas walk-behind outdoor product lines (as previously communicated). Organic growth is also referred to as organic sales growth
and organic revenue growth.

SOURCE Stanley Black & Decker, Inc.

Key Takeaways Stanley Black & Decker is expected to post higher Q2 earnings despite slightly lower revenues.SWK may benefit from DEWALT momentum, outdoor product demand and ongoing cost-efficiency initiatives.Stanley Black & Decker faces headwinds from DIY softness, aerospace labor shortages and higher costs. Stanley Black & Decker, Inc. (SWK - Free Report) is scheduled to release second-quarter 2026 results on July 29, before market open.

The Zacks Consensus Estimate for this New Britain, CT-based tool maker’s second-quarter revenues is pegged at $3.93 billion, indicating a decline of 0.3% from the year-ago quarter. The consensus estimate for adjusted earnings is pinned at $1.20 per share. The figure indicates growth of 11.1% from the year-ago quarter’s number.

The consensus estimate for earnings has declined 0.8% over the past 60 days. The company has an impressive earnings surprise history, having outperformed the consensus estimate in each of the preceding four quarters, the average surprise being 61.6%.

Let’s see how things have shaped up for Stanley Black before the announcement.

Factors Likely to Have Shaped SWK’s Quarterly PerformanceStanley Black’s Tools & Outdoor segment’s results are expected to benefit from the solid momentum in its DEWALT business and recovery in demand for outdoor products. However, softness in the DIY market and depressing demand for hand tools remain concerning. We expect the Tools & Outdoor segment’s revenues to increase 2.3% year over year to $3.54 billion.

Strength in the aerospace market and solid momentum in the automotive market are expected to have aided the Engineered Fastening segment’s second-quarter performance. However, the company divested its business unit, Consolidated Aerospace Manufacturing LLC (“CAM”), in April 2026, which is likely to weigh on the segment’s top-line results. We expect the Engineered Fastening segment’s revenues to decline 17.8% year over year to $397 million.

Stanley Black has been incurring high costs and operating expenses over time, which are likely to have weighed on its performance. Also, supply-chain challenges and labor shortages, especially in the aerospace market, are likely to affect its results in the to-be-reported quarter.

Nevertheless, SWK’s focus on cost reduction and operational efficiency is likely to have supported its bottom line in the to-be-reported quarter. The company is expected to have put up a healthy margin performance, aided by supply-chain transformation and inventory reduction efforts.

Earnings WhisperOur proven model does not conclusively predict an earnings beat for Stanley Black this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: Stanley Black has an Earnings ESP of -0.18%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: SWK presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks With the Favorable CombinationHere are three companies, which according to our model, have the right combination of elements to post an earnings beat this season.

Crane Company (CR - Free Report) has an Earnings ESP of +4.73% and a Zacks Rank of 2 at present. The company is scheduled to release second-quarter 2026 results on July 28.

Crane’s earnings surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 11.3%.

Ingersoll Rand Inc. (IR - Free Report) has an Earnings ESP of +0.61% and a Zacks Rank of 3 at present. The company is slated to release second-quarter 2026 results on July 30.

Ingersoll Rand’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters while matching the mark in two, the average surprise being 2.4%.

RBC Bearings Incorporated (RBC - Free Report) has an Earnings ESP of +0.66% and a Zacks Rank of 2 at present. The company is scheduled to release first-quarter fiscal 2027 earnings on July 31, before market open.

RBC Bearings’ earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 6.2%.

Stanley Black & Decker (SWK - Free Report) is expected to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 29. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis tool company is expected to post quarterly earnings of $1.20 per share in its upcoming report, which represents a year-over-year change of +11.1%.

Revenues are expected to be $3.93 billion, down 0.3% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.36% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Stanley Black & Decker?For Stanley Black & Decker, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.18%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that Stanley Black & Decker will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Stanley Black & Decker would post earnings of $0.61 per share when it actually produced earnings of $0.80, delivering a surprise of +31.15%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Stanley Black & Decker doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Featuring daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, the research service can help you become a smarter, more self-assured investor.

Zacks Premium also includes the Zacks Style Scores.

What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value ScoreFinding good stocks at good prices, and discovering which companies are trading under their true value, are what value investors like to focus on. So, the Value Style Score takes into account ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to highlight the most attractive and discounted stocks.

Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.

Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.

VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.

#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.

But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.

That's where the Style Scores come in.

To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.

Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.

A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: Stanley Black & Decker (SWK - Free Report) Headquartered in New Britain, CT, Stanley Black & Decker, Inc. manufactures and provides tools (power and hand tools) and related accessories, engineered fastening systems, and several other items and services.

SWK is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

It also boasts a Value Style Score of B thanks to attractive valuation metrics like a forward P/E ratio of 16.43; value investors should take notice.

Two analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.05 to $5.35 per share. SWK boasts an average earnings surprise of +61.6%.

With a solid Zacks Rank and top-tier Value and VGM Style Scores, SWK should be on investors' short list.

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Stanley Black & Decker (SWK - Free Report) , which belongs to the Zacks Manufacturing - Tools & Related Products industry, could be a great candidate to consider.

This tool company has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 21.09%.

For the last reported quarter, Stanley Black & Decker came out with earnings of $0.8 per share versus the Zacks Consensus Estimate of $0.61 per share, representing a surprise of 31.15%. For the previous quarter, the company was expected to post earnings of $1.27 per share and it actually produced earnings of $1.41 per share, delivering a surprise of 11.02%.

Price and EPS Surprise

Thanks in part to this history, there has been a favorable change in earnings estimates for Stanley Black & Decker lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Stanley Black & Decker currently has an Earnings ESP of +1.13%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on July 29, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

The S&P 500 is up about 10% this year, yet 80% of that gain comes from technology stocks, many of which are tied to artificial intelligence. With interest rates and energy prices spiraling higher, and inflation clearly not under control, those willing to put any new money to work in stocks should likely be extremely careful. Why, you ask? The Shiller P/E, which compares the market’s price to average inflation-adjusted earnings over the trailing decade, currently sits at 41. This is the highest the Shiller P/E has been since the dot-com bubble peak, which reached roughly 44 in 1999. Both levels are significantly above the long-term historical average of around 17.

Investors seeking defensive companies that pay substantial dividends are drawn to the Dividend Aristocrats, and with good reason. The 69 companies that made the cut for the 2026 S&P 500 Dividend Aristocrats list have increased their dividends (not just maintained them) for 25 consecutive years. But the requirements go even further, with the following attributes also mandatory for membership on the aristocrats list:

Companies must be worth at least $3 billion for each quarterly rebalancing. Their average daily trading volume must be at least $5 million in transactions for every trailing three-month period at every quarterly rebalancing date. They must be a member of the S&P 500. We screened the 2026 Dividend Aristocrats to identify companies trading at the best price-to-earnings ratios and found five that also pay among the highest dividends in the group. All are rated Buy at top firms we cover on Wall Street, and all make sense for growth and income investors worried about the current state of the stock market.

Why do we cover the Dividend Aristocrats?

S&P 500 companies that have paid and raised their dividends for 25 years or longer are the types that growth and income investors want to buy and hold in their stock portfolios for the long term. These stocks are mostly conservative, and should we see a dramatic market correction, they will likely hold their ground much better than volatile technology names, many of which are overbought and frothy.

Hormel Foods Hormel Foods (NYSE: HRL | HRL Price Prediction) is an American food processing company founded in 1891 in Austin, Minnesota. With shares down 14% already in 2026, the stock trades at 13.07 times forward earnings estimates. Hormel offers dual pricing power through both branded products and private-label manufacturing, as well as a reliable 4.7% dividend.

Hormel develops, processes, and distributes a range of meat, nuts, and other food products to retail, foodservice, deli, and commercial customers in the United States and internationally. It operates through three segments:

Retail Food Service International This Dividend Aristocrat is a consumer staples company focused on protein-based packaged foods. Its yield is historically high, and the Hormel Foundation’s oversight ensures dividend reliability. Reports indicate that it is restructuring its portfolio and cutting costs to improve performance.

The company provides various perishable products, including fresh meats, frozen items, refrigerated meal solutions, sausages, hams, guacamole, and bacon, and shelf-stable products, including canned luncheon meats, nut butter, snack nuts, chili, shelf-stable microwaveable meals, hash, stews, tortillas, salsas, tortilla chips, nutritional food supplements, and others. It sells its products under these brands:

Hormel Always Tender Applegate Austin Blues Bacon 1 Black Label Bread Ready Burke Café H Ceratti Chi-Chi’s Columbus Compleats Corn Nuts Cure 81 Dan’s Prize Di Lusso Dinty Moore Don Miguel Doña Maria Embasa Fast N Easy Fire Braised Fontanini Happy Little Plants Herdez Hormel Gatherings Hormel Square Table Hormel Vital Cuisine House of Tsang Jennie-O Justin’s La Victoria Layout Lloyd’s Mary Kitchen Mr. Peanut Natural Choice Nut-rition Old Smokehouse Oven Ready Pillow Pack Planters Rosa Grande Sadler’s Smokehouse Skippy Spam Special Recipe Thick & Easy Valley Fresh Wholly Barclays has an Overweight rating with a $23 target price.

Stanley Black & Decker Stanley Black & Decker (NYSE: SWK) is the world’s largest tool company, with 50 manufacturing facilities in the United States and more than 100 worldwide, and its shares trade at 13.54 times forward earnings estimates. With the potential for the economy to slow down somewhat, you can bet that the do-it-yourself legions will fix rather than buy new, and this legendary stock is a solid idea now, while yielding a large 3.53% dividend.

Stanley Black & Decker provides hand tools, power tools, outdoor products, and related accessories in the United States, Canada, Europe, and elsewhere. Its Tools & Outdoor segment offers professional-grade corded and cordless electric power tools and equipment, including:

Drills Impact wrenches and drivers Grinders, saws, routers, and sanders Pneumatic tools and fasteners, such as nail guns, nails, staplers and staples, and concrete and masonry anchors; corded and cordless electric power tools Hand-held vacuums, paint tools, and cleaning appliances Leveling and layout tools, planes, hammers, demolition tools, clamps, vises, knives, saws, chisels, and industrial and automotive tools Drill, screwdriver, router bits, abrasives, saw blades, and threading products Toolboxes, sawhorses, mechanic cabinets, and engineered storage solutions Electric and gas-powered lawn and garden products This segment sells its products under these brand names:

DeWalt Craftsman Cub Cadet Black+Decker Hustler The company’s Industrial segment provides:

Threaded fasteners, blind rivets and tools, blind inserts and tools Drawn arc weld studs and systems Engineered plastic and mechanical fasteners Self-piercing riveting systems Precision nut running systems Micro fasteners High-strength structural fasteners Axle swage, latches, heat shields, pins, couplings, fittings, and other engineered products Attachments used on excavators and handheld tools This segment sells its products through a direct sales force and third-party distributors to various industries, including automotive, manufacturing, electronics, construction, aerospace, and others.

UBS has a Buy rating on the shares and a $98 target price.

Genuine Parts Investors seeking a solid retail investment should consider purchasing this company, as its products remain in high demand and it has raised the dividend for 69 consecutive years. Genuine Parts (NYSE: GPC) is a global service provider of automotive and industrial replacement parts and value-added solutions, trading at 11.77 times forward earnings estimates with a 3.9% dividend yield.

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The Automotive segment distributes replacement parts (other than collision parts) for all makes and models of automobiles, trucks, and other vehicles in North America, Europe, and Australasia. Its main automotive customers are repair and maintenance shops, and its main industrial customers are businesses operating distribution, manufacturing, and production equipment.

The Industrial segment distributes a wide variety of industrial bearings, mechanical and fluid power transmission equipment, including:

Hydraulic and pneumatic products Material handling components Related parts and supplies This segment offers replacement parts and solutions to customers in the maintenance, repair, and operation business, as well as to original equipment manufacturers.

Raymond James has a Strong Buy rating on the shares with a $145 target.

PepsiCo This top consumer staples stock reported solid first-quarter earnings and will continue to supply all the goods for summer picnics and parties. PepsiCo (NYSE: PEP) is a global food and beverage company with a very solid 4.08% dividend yield and a forward P/E of 16.92.

Activist investor Elliott Investment Management recently took a $4 billion stake in PepsiCo last September, revealing a strategy to unlock value by focusing on core strengths such as innovation and brand marketing, rather than its capital-intensive bottling operations. This move caused PepsiCo’s stock to surge, with Elliott believing the company could see over 50% upside if its proposed strategic changes were implemented. However, these changes would involve a very long-term transformation.

PepsiCo’s Frito-Lay North America segment offers:

Lays and Ruffles potato chips Doritos, Tostitos, and Santitas tortilla chips Cheetos cheese-flavored snacks, branded dips Fritos corn chips The company’s Quaker Foods North America segment provides:

Quaker Oatmeal Grits Rice cakes Natural granola and oat squares Pearl Milling mixes and syrups Quaker Chewy granola bars Cap’n Crunch cereal Life cereal Rice-A-Roni side dishes PepsiCo’s North America Beverages segment offers beverage concentrates, fountain syrups, and finished goods under these brands:

Pepsi Gatorade Mountain Dew Diet Pepsi Aquafina Diet Mountain Dew Tropicana Pure Premium Sierra Mist Mug Goldman Sachs has a Buy rating with a $183 price objective.

PPG Industries Formerly known as Pittsburgh Paint and Glass, it has paid dividends to shareholders since 1899 and currently offers a 2.30% dividend, trading at a very reasonable 12.83 times forward earnings estimates. PPG Industries (NYSE: PPG) manufactures and distributes paints, coatings, and specialty materials in the United States, Canada, the Asia Pacific, Latin America, Europe, the Middle East, and Africa. It operates through two segments.

The Performance Coatings segment offers:

Coatings Solvents Adhesives Sealants Sundries Software for automotive and commercial transport/fleet repair and refurbishing Light industrial coatings and specialty coatings for signs Wood stains, paints, thermoplastics, pavement marking products, and other advanced technologies for pavement marking for government, commercial infrastructure, painting, and maintenance contractors Coatings, sealants, transparencies, transparent armor, adhesives, engineered materials, and packaging and chemical management services for commercial, military, regional jet, and general aviation aircraft The Industrial Coatings segment offers coatings, adhesives, and sealants, as well as metal pretreatments, services, and coatings applications for:

Appliances, agricultural and construction equipment Consumer electronics, automotive parts, and accessories Building products Kitchenware Vehicles and other finished products. On-site coatings services It also provides coatings for metal cans, closures, plastic and aluminum tubes for food, beverage, and personal care, promotional, and specialty packaging; amorphous precipitated silica for tires, battery separators, and other end-users; TESLIN substrates for labels, e-passports, driver’s licenses, breathable membranes, and loyalty and identification cards; and organic light emitting diode materials, displays and lighting lens materials, optical lenses, color-change products, and photochromic dyes.

Wells Fargo has an Overweight rating with a target price of $130.

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Stock to Watch: Stanley Black & Decker (SWK - Free Report) Headquartered in New Britain, CT, Stanley Black & Decker, Inc. manufactures and provides tools (power and hand tools) and related accessories, engineered fastening systems, and several other items and services.

SWK is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Industrial Products stock. SWK has a Momentum Style Score of B, and shares are up 6.2% over the past four weeks.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.13 to $5.35 per share. SWK boasts an average earnings surprise of +61.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, SWK should be on investors' short list.

Stanley Black & Decker faces headwinds in the Tools & Outdoor segment, reflecting broader consumer sentiment and sluggish U.S. housing activity. SWK is prioritizing debt reduction, with recent cash flow improvements as well as the divestiture of consolidated aerospace manufacturing, supporting deleveraging efforts and financial stability. Valuation metrics and insider activity suggest a cautious stance, as the company navigates mixed fundamentals and macroeconomic uncertainty.

Stanley Black & Decker says fewer buyers want the Connecticut plant's single-sided tape measures, preferring double-sided ones made abroad.