Stock Entry Point Article​

Stanley Black & Decker is unlike other tools and hardware stocks

Stanley Black & Decker does business in three segments – Tools and Storage, Security, and Industrial. The Tools and Storage segment accounts for roughly 70% of the company’s total revenue, which in 2019 was $14.4 billion. About 59% of Stanley Black & Decker’s revenue comes from the US market. Europe accounts for 20% while Emerging Markets make up 13% of the overall revenue. So, the company has a US-centric business.

The pandemic might have been a surprise growth driver

Due to lockdown guidelines and shelter-in-place orders, people are finding more time to take up DIY and home improvement projects. Such projects require tools and hardware, products that Black & Decker specializes in selling. So, even though the economy is going through a difficult phase, Black & Decker has found the situation to be an unlikely source of some tailwind to its Tools and Storage segment.

Stanley Black & Decker – one of the best industrial stocks

The Industrial segment of the company is further divided into Engineered Fastening and Infrastructure sub-segments. The Engineered Fastening sub-segment deals with products like blind rivets and tools, drawn arc weld studs and systems, blind inserts and tools, self-piercing riveting systems and precision nut running systems, engineered plastic and mechanical fasteners, micro fasteners, and high-strength structural fasteners.

The Infrastructure sub-segment mainly sells and rents to the oil and gas sector joint welding and coating equipment used in the construction of large and small diameter pipelines, custom pipe handling, and provides pipeline inspection services. Hydraulic equipment and tools are also part of the product offering in this sub-segment.

Given the multitude of offerings, investors looking to buy industrial stocks can definitely consider Stanley Black & Decker.

The security segment

Products in this segment cover areas like video surveillance, alarm monitoring, fire alarms, and installation services. What separates Stanley Black & Decker from other top security stocks is its offering in the healthcare space. The company has products for infant protection, patient protection, and emergency calling. The competition in the security segment is fragmented and allows Stanley Black & Decker to leverage its scale and brand.


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