![]() ![]() When we started this position in mid June, we were attracted by the series of initiatives Stanley had announced to finally get over its Covid-19 housing-boom hangover and supply-chain slipups. ![]() Although the so-called do-it-yourself (DIY) market is still somewhat soft, it could still pick up as high mortgage rates keep people in their homes. At the same time, demand for its quality tools has remained solid due to resilient housing market end strength from its professional customers, like contractors, which account for about 70% of its tools business. As a result, we're raising our price target to $110 a share, up from $100. The increasingly likely return to profitability in the second half of this year should support the stock's rally. Bottom line Fresh signs that the turnaround at Stanley Black & Decker - a leading manufacturer of industrial tools and household hardware - is in full force has us bullish about its potential earnings power in a more normalized environment. ![]() The stock soared more than 4% Tuesday, to roughly $103.50 a share. Adjusted earnings-per-share (EPS) came in at a loss of 11 cents, down from a $1.77-per-share profit last year but ahead of Wall Street's prediction of a 37 cent-per-share loss, Refinitiv data showed. Revenue for the three months ended June 30 fell 5% year-over-year, to $4.16 billion, slightly beating analysts' forecasts of $4.14 billion, according to estimates compiled by Refinitiv. With gross margins improving and earnings growth inflecting next year, we're sticking with the stock and looking to add to our position on potential pullbacks. Stanley Black & Decker (SWK) reported a solid second quarter Tuesday, demonstrating it's becoming a more streamlined business through cost cuts, inventory reductions and an improved supply chain. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit ![]()
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