There's a lot going on at Stanley Black & Decker (SWK). Meaningful improvements to the business and a strong remodel/renovation market have supported healthier trends in Tools & Storage, while the sudden, sharp decline in auto builds has made life difficult in that business, and management still doesn't seem to have made up its mind on the Security business. On top of that, the company has launched an aggressive cost reduction program, with a prominent place given to automation, and management seems keen to pursue reshoring.
When I last wrote about Stanley Black & Decker, I wasn't inclined to chase and thought there would be opportunities to buy on dips. I certainly wasn't expecting the crater that was to come with the COVID-19 panic, but the shares have done a little better overall than the average industrial since that last piece. While Stanley Black & Decker is not as cheap as I'd like, I do like the momentum in this business and the possibility of both above-average growth and margins after a period of underperformance.
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Stanley Black & Decker Looks Poised To Outperform Its Industrial Peers
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