Stanley Black & Decker
Stanley Black and Decker news have been quite positive lately. The company recently raised its second-quarter revenue guidance after seeing strength in the US retail channel. The company had estimated second-quarter revenue to fall by 35% to 45% back in April. However, that estimate was revised to a 20% to 30% drop in May, and it has now been revised to a 15% to 20% drop.
According to James Loree, CEO, Stanley Black and Decker, “You certainly can point to the DIY coming alive as the single biggest factor.” He further added, “All these folks at home looking for things to do in some cases. There’s pent-up demand for projects in the home.”
About 70% of the company’s revenue comes from the tools and storage segment. This segment is expected to perform well even in a lockdown situation due to the DIY activities that are gaining increasing popularity. Additionally, Stanley Black and Decker is well-positioned to leverage the rising trend of e-commerce. The company is an e-commerce leader in the tools industry with its online revenues touching $1.3 billion in 2019.
Stanley Black and Decker tools and equipment products are also used extensively by industries like auto, energy, and manufacturing. So, when the economy recovers, Stanley Black and Decker stock will also see an upside. The stock can be, therefore, classified as a “re-open” stock.
The company has also made a series of acquisitions over the years. The list of Stanley Black and Decker subsidiaries added a new member in February 2020. Stanley Black and Decker paid $1.5 billion to acquire Consolidated Aerospace Manufacturing to announce its entry into the aerospace sector.
Stanley Black and Decker stock closed at $131.09 on 12th May 2020, up 20.58% for the past month.