Stanley Black & Decker is a well-known hardware and tools company. However, it has substantial offerings in the security segment as well. The company caters to retail consumers, retailers, healthcare facilities, educational institutes, financial institutions, industrial customers, government organizations, and commercial customers. It sells all kinds of security systems, alarm systems, and offers installation as well as maintenance services as well.
Why Stanley Black & Decker is among the best security stocks?
Stanley Black & Decker operates in a market (i.e. the security market) which is fragmented and has international as well as regional companies jostling for market share. Product quality, brand strength, and superior customer service all play a part in the success of a business in the security products and solutions market. Stanley Black & Decker has all of those qualities with its vast scale, presence in multiple markets, and its 150+ year history.
Recent performances
Stanley Black & Decker reported its Q22020 earnings in July-end. Even though the results were down on a year-on-year basis, they still beat analyst estimates. In fact, Q2 was the sixth consecutive quarter when analyst estimates were exceeded by the company. Revenues dropped from $3.76 billion in the same quarter the prior year to $3.14 billion in Q22020. Earnings per share fell from $2.41 to $1.52. Cash and cash equivalents went up to $859 million from $297 million on 28th December 2019.
The Industrial Segment
Stanley Black & Decker is one of the industrial stocks to buy as it has a wide array of products within the segment. The industrial segment is the second-highest revenue generator for the company. In Q22020, the segment brought in revenues of 517 million. Pre-pandemic, the industrial segment accounted for 16.5% of the company’s profits. However, the pandemic has severely affected Stanley Black & Decker’s industrial and security segments. Profit from the industrial segment fell to 1.3% while profit from the security segment went from 6.6% in Q22019 to 2.5%. This drop, however, is expected to be temporary until the economy rebounds.
