One of the surprising effects of the pandemic has been the increase in DIY and home improvement activities. A study of 1000 homeowners done by Seattle-based home improvement website Porch revealed that $17,140 was spent by the average homeowner on home improvements during the pandemic. It is the reason for the strong performances of stocks like Home Depot and Lowe’s. Home Depot is up 88% since the March crash while Lowe’s is up 149% during the same period. Home improvement activities require tools and household hardware stocks like Stanley Black & Decker are benefitting.
Even though Stanley Black & Decker is down 4.55% for the year 2020, it has rallied 122% since March 23rd, 2020, making is one of the top-performing tools and accessories stocks at the moment. The company was recently named as one of the top 100 workplaces for innovators by Fast Company. Jim Loree, the CEO, Stanley Black & Decker, said, “For more than 177 years, Stanley Black & Decker has continued to innovate its products, culture and operating model to thrive across three industrial revolutions, and we are honored to receive this recognition.”
Stanley Black & Decker also makes an array of industrial tools. It provides engineered fastening solutions to manufacturers, equipment and services to oil and gas companies, and mounted and handheld hydraulic products to the heavy construction sector. Stanley Black & Decker does business in 3 segments – Tools and Storage, Industrial, and Security. It is considered by some investors to be one of the top industrial stocks to buy, with its 176-year-old history and presence across more than 60 countries around the world.
Many analysts are currently rating Stanley Black & Decker as a buy with target prices around $150. The range of target prices is quite wide, varying between $130 and $175. Analysts from companies like Credit Suisse and Barclays are giving the stock a buy rating.