Stanley Black To Launch Two Innovative Solutions In CES

Stanley Black & Decker, Inc. (NYSE:SWK) will roll out two innovative solutions in the Consumer Electronics Show, to be held in Lag Vegas between Jan 8-11, 2019. The two state-of-the-art solutions — PRIA by BLACK+DECKER and OMNI — have been developed by the company’s Security's Futures innovation team.

Inside the Headlines

Stanley Black & Decker’s Security's Futures team designs and commercializes breakthrough innovative solutions. The team’s latest solution, PRIA by BLACK+DECKER will aid in revolutionizing medication management to facilitate independent living. The users will be able to integrate this premium automated home health assistant system in their smartphones through a specific application. An individual will be able to monitor a patient’s healthcare and medication schedule effectively with this solution. It is capable of scheduling nearly 28 medication doses, provide reminder alerts in appropriate times, and will also offer patient related information to users through an in-built camera and a simple voice command.

On the other hand, the company’s OMNI solution will significantly aid in improving business and home security of users through its unique radio frequency sensing technology. This technology will be able to interpret WiFi signals. Moreover, the motion detection system of OMNI will provide solutions that help in alerting the users to motion around their workplace or home, without privacy risks or high cost that are associated with the existing systems. Additionally, the product can be personalized as in privacy, device quarantine and multi-device cyber security mode.

We believe the debut of OMNI and PRIA by BLACK+DECKER will strengthen Stanley Black & Decker’s existing product portfolio. The solutions will be available for commercial use in summer of 2019.

Our Take

Stanley Black & Decker currently carries a Zacks Rank #3 (Hold). Growing popularity of premium brands (like Craftsman, Lenox, Irwin and DeWalt FlexVolt), increased gains from acquired assets and innovation investments will likely boost the company’s revenues in the quarters ahead. Additionally, Stanley Black & Decker intends to improve its near-term bottom-line performances on the back of strategic pricing actions and diligent cost-cutting moves. The company even remains on track to provide higher remuneration to its shareholders.

Nevertheless, over the past year, Stanley Black & Decker’s shares have lost 27.8%, almost in line with the loss of 27.7% recorded by its industry.

We notice that the company is currently plagued with escalating cost of sales and operating expenses. The company believes material-price inflation (on account of tariffs levied over U.S. imports on products like resin and steel) will continue to dent its profitability in the quarters ahead. Moreover, a stronger U.S. dollar might continue to hurt Stanley Black & Decker’s overseas revenues and profits in the quarters ahead. Also, the company expects that lesser oil and gas projects and the automotive system rollovers will weigh over the results of its Industrial segment in 2018.

Stocks to Consider

Some better-ranked stocks in the Zacks Industrial Products sector are listed below:

DXP Enterprises, Inc. (NASDAQ:DXPE) sports a Zacks Rank #1 (Strong Buy). The company pulled off a positive average earnings surprise of 112.62% in the past four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Luxfer Holdings PLC (NYSE:LXFR) also flaunts a Zacks Rank of 1. The company delivered a positive average earnings surprise of 24.27% in the trailing four quarters.

Applied Industrial Technologies, Inc. (NYSE:AIT) holds a Zacks Rank #2 (Buy). The company generated a positive average earnings surprise of 11.67% in the preceding four quarters.

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