InvestingPro’s Fair Value model identified Stanley Black & Decker (NYSE:SWK) as significantly undervalued in April 2025, when the share price was $59.95, implying a fair value of $89.19 and an estimated upside of 48.77%. The company’s FY2025 revenue was $15.2 billion, EPS $2.42 and EBITDA $1.59 billion, but the stock had fallen 21.93% that month.
Following the call, the share price climbed to $98.11 by August 2026, delivering a total return of 63.65%, which exceeded the original upside estimate. As of 20 September 2026 the stock was trading at $89.58, representing an 18.05% gap below the revised fair value of $111.65.
Q2 2026 results showed EBITDA of $1.79 billion, a 12.9% increase year‑on‑year, and earnings per share of $4.11, a 69.5% rise, confirming the operational improvements highlighted by the model. The company also completed a strategic sale of its aerospace unit for $1.8 billion and was added to Mizuho’s top U.S. industrials picks list. Barclays maintained an Overweight rating on the stock.
InvestingPro’s methodology combines discounted cash flow, comparable company and dividend discount models to derive intrinsic value, emphasizing margin expansion, pricing power and management execution as key drivers of the mispricing identified.
Investors seeking similar opportunities are directed to InvestingPro’s platform for real‑time alerts and comprehensive financial analysis tools.