Analyst upgrade boosts Stanley Black & Decker stock

Shares of Stanley Black & Decker (NYSE: SWK) closed 3.4% higher after an analyst removed the “underperform” rating and upgraded the stock to neutral. The analyst believes the demand for tools is near bottom and should rebound, especially if the Federal Reserve cuts interest rates. Stanley’s working through its third consecutive year of declining sales, but most analysts predict earnings growth and a respectable 11% long-term growth rate. With strong free cash flow and a 4.7% dividend yield, the stock looks undervalued. The Motley Fool Stock Advisor team identified 10 best stocks for investors to buy now, with Stanley Black & Decker not included. The Stock Advisor’s total average return is 1,053%, significantly outperforming the S&P 500.

Read more at Yahoo Finance: Why Stanley Black & Decker Stock Popped Today