There’s no “just one thing” that matters above all else
when it comes to industrial companies and market valuations, but margins
count for a lot. That makes Stanley Black & Decker’s (SWK)
surprisingly strong second quarter margin performance all the more
welcome, and particularly so with the company recently outlining a path
to meaningful further margin improvement over the next three years.
Weaker
end-markets remain a risk for the remainder of 2019, and management’s
guidance seems a little conservative relative to the performance seen in
the second quarter, but Stanley Black & Decker seems to be on
better footing and with drivers still yet to materialize (expanding the
distribution channels for Craftsman, for instance). The shares aren’t
all that cheap now, but on another dip below $140, it would definitely
be a name to consider.
Read more here:
Stronger Margins A Welcome Surprise From Stanley Black & Decker
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