We recently compiled a list of the 10 Stocks Analysts Are Upgrading Today.In this article, we are going to take a look at where Stanley Black & Decker, Inc. (NYSE:SWK) stands against the other stocks analysts are upgrading today.
The easing of the US-China trade war is the catalyst driving equity markets higher after weeks of heightened volatility. Major US indices are once again back into positive territory after recouping all the losses accrued in the aftermath of the U.S. waging a ferocious trade war in the race to settle a long-running trade deficit.
“And just like that, the markets’ twin fears — a tariff-induced recession and sticky inflation — have been greatly assuaged,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. “We’re still concerned that high valuations and market concentration remain risks to much higher stock prices this year, but in the short run, markets should love this data and continue yesterday’s (China-trade) celebration.”
The Magnificent Seven club members added over $800 billion in market value in the aftermath of the U.S. and China pausing most tariffs on each other’s goods. As trade tensions between the two greatest economies in the world threatened to disrupt supply chains and harm some of the top U.S. enterprises, technology equities, including semiconductor companies and smartphone manufacturers, were impacted significantly.
However, after negotiations between the United States and China resulted in a brief halt to “reciprocal” duties, investors exhaled with relief. A 90-day tariff delay agreed to by the United States and China relieved Wall Street.
“With US/China clearly on an accelerated path for a broader deal we believe new highs for the market and tech stocks are now on the table in 2025 as investors will likely focus on the next steps in these trade discussions which will happen over the coming months. This morning is a huge win for the bulls and a best case scenario post this weekend in our view,” Daniel Ives, global head of technology research at Wedbush Securities, said in a note on Monday.
Adding to the gains following tariff relief was softer-than-expected inflation data that affirmed the case for a Federal Reserve interest rate cut in June. In April, the consumer price index, a broad indicator of the expenses of goods and services across the U.S. economy, rose 2.3% annually. According to a Dow Jones poll of economists, last month’s inflation rate was projected to stay at 2.4% year over year. The much lower inflation level amid a waging tariff war has heightened the case for the U.S. central bank to cut rates, which works in favor of equities.
Consequently, analysts on Wall Street have been aggressive in upgrading stocks initially battered by concerns of the long-term impact of a vicious U.S.-China trade war. With the 90-day truce, awaiting further negotiations, analysts expect heightened trading activities between the two nations, which is a positive for business.
We sifted through financial media reports to compile a list of 10 stocks analysts are upgrading today, on May 13. We then settled on the top 10 stocks that have received an analyst upgrade and ranked them in ascending order based on their average upside potential.
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Stanley Black & Decker, Inc. (SWK): One of the Best Dividend Growth Stocks with High Yields
A toolbox filled with an array of different tools, representing the professional products of the company.
Stock Upgrade: Equal Weight to Overweight
Stock Price Target: $90
Stock Upside Potential as of May 13: 23.28%
Stanley Black & Decker, Inc. (NYSE:SWK) provides hand tools, power tools, outdoor products, and related accessories for professional and consumer applications. It offers professional-grade corded and cordless electric power tools and equipment, including drills, impact wrenches, and drivers. Barclay’s analyst Julian Mitchell upgraded the stock to an ‘Overweight’ from ‘Equal Weight’ and hiked the price target to $90 from $69.
The upgrade includes revising the company’s earnings per share estimate to affirm a more optimistic outlook. Barclays expects Stanley Black and Decker to post an EPS of $5.76 in 2025, higher than the consensus estimate of $5.64 for fiscal 2025. The firm hiked the EPs estimate on expectations that the company will benefit from the improving US-China trade relations following the easing of trade tariffs.
According to Barclays, improving trade relations between the US and China should trigger organic sales growth of 4% and an adjusted operating margin expansion of over 100 basis points. Stanley Black and Decker had initially warned that it would have to raise prices of its tools as a mitigation against Trump’s tariffs. The company also expected the tariff war to affect its EPS by about 75 cents. However, with the Trump administration reaching a 90-day truce, Stanley Black & Decker, Inc.’s (NYSE:SWK) outlook has been boosted.
Overall SWK ranks 2nd on our list of the stocks analysts are upgrading today. While we acknowledge the potential of SWK as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SWK but that trades at less than 5 times its earnings check out our report about this cheapest AI stock.
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