|
|
|
ONLINE FEATURES
Book Reviews
BW Video
Columnists
Interactive Gallery
Newsletters
Past Covers
Philanthropy
Podcasts
Special Reports
BLOGS
The Auto Beat
Byte of the Apple
Europe Insight
Eye on Asia
Getting In
Investing Insights
The New Entrepreneur
NEXT: Innovation Tools & Trends
On Media
Technology at Work
The Tech Beat
Traveler's Check
TECHNOLOGY
Product Reviews
Tech Stats
Hands On
AUTOS
Home Page
Auto Reviews
Car Care & Safety
INNOVATION
& DESIGN Home Page Architecture Brand Equity Auto Design Game Room SMALLBIZ Smart Answers Success Stories Today's Tip FINANCE Investing: Europe Annual Reports Bloomberg BW50 SCOREBOARDS Hot Growth Companies: 2008 Mutual Funds Info Tech 100 B-SCHOOLS Undergrad Programs Rankings & Profiles |  |
NOVEMBER 10, 2003
Driving Black & Decker 
Black & Decker (BDK
), a leader in power tools and home-improvement gear, has recently stirred, whizzing from 40 on Sept. 30 to 47.81 on Oct. 29. Robert Stovall of Wood Asset Management, which owns shares, says some pros are starting to recognize that B&D is an "undervalued and ignored blue-chip." Despite the rise, he sees the stock surging to 58 in a year. Stovall notes that some analysts lifted 2003 and 2004 earnings forecasts after B&D handily beat their third-quarter estimates
The Street had been down on B&D amid doubts over the strength of consumer spending. But B&D's top brands, says Stovall, are going gangbusters at Home Depot and Lowe's, despite fierce rivals -- including Home Depot's private-label tools. Michael Rehaut of J.P. Morgan rates B&D "outperform." Brisk sales growth, he says, plus $120 million in savings from a restructuring are exceeding his expectations. So he has raised his 2004 estimate from $4.20 a share to $4.50 -- vs. the $4.26 Street consensus. His 2003 forecast is $3.95, vs. 2002's $3.23. If he's on the mark, then B&D is trading at 10.4 times 2004 earnings, vs. 17 for the Standard & Poor's 500-stock index. Note: Unless otherwise noted, neither the sources cited in Inside Wall Street nor their firms hold positions in the stocks under discussion. Similarly, they have no investment banking or other financial relationships with them.  By Gene G. Marcial Get BusinessWeek directly on your desktop with our RSS feeds.  Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
 Copyright 2003, Bloomberg L.P.Terms of Use | Privacy Policy |
Printer-Friendly Version
