The S&P 500's bull market turned two years old this past Saturday. From the closing trough in mid-October 2022 to last Friday's all-time high, the S&P 500 Total Return Index was more than 67%. Underperforming, however, have been dividend growers.
Stanley Black & Decker: Expected Q3 Winner And Dividend Aristocrat, Sports Bullish Trends
Summary
- I have a buy rating on SWK due to its strong expected EPS growth, appealing valuation, and rising dividend despite higher interest rates.
- Stanley Black & Decker reported solid Q2 results, with non-GAAP EPS of $1.09 beating expectations and strong cash flow, boosting shares by 10%.
- Key risks include high debt, a weaker consumer environment, and adverse currency moves, but strong guidance and bullish sentiment suggest a positive Q3 report.
- Technically, SWK is in a decent position with a rising 200-day moving average and bullish RSI, though it remains sensitive to interest rates.
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