Our first recommendation is a tool company who is being feted on Wall Street, with upgrades—Zelman, to ‘Buy’ and Morgan Stanley, to ‘Overweight’; earnings beat ($0.12), and 21 analysts raising their earnings forecasts in the past 30 days. Our second recommendation is a sale of a previous idea.
Buy: Stanley Black & Decker, Inc. (SWK)
From The Wealth Advisory
Stanley Black & Decker, Inc. (SWK) provides tools and storage, commercial electronic security, and engineered fastening systems worldwide. Wealth Advisory Earnings Grade: A+
Recent headlines:
- Beat estimates in four of the past four quarters.
- SWK buys drone company to offer personal drone security guards.
TWA Bottom Line: Stanley got over its late September slump and hit another new all-time-high price last Friday with $159.71. The company is executing its growth strategy very well and just scored deals for acquiring two more companies. It’s now adding drones to its security repertoire and long-lasting batteries to its construction lineup. It won’t be long before the company hits my original target of $200. Keep adding shares of SWK—especially on dips if you see any.
My limit price is going up to $165, and the 12-month price target is $210, for now.
Briton Ryle, The Wealth Advisory, www.angelpub.com, 877-303-4529, October 2017