Stanley Black & Decker operates in the industrial sector. It is well known more making tools, handheld equipment and also has a security business segment. Electric power tools and equipment, pneumatic tools, fasteners, and other home-improvement/DIY products are among the most well-known Stanley Black & Decker offerings. The company has over 53,000 employees as of 2021 and is based out of Connecticut, USA. The industrials segment could see a bright period during the post-pandemic economic recovery. Investors looking to play the industrials sector could look at Stanley Black & Decker as one of the best industrial stocks to buy now.
Stanley Black & Decker Q42020 Earnings
On 28th January 2021, Stanley Black & Decker reported its Q42020 earnings results. Revenues were $4.4 billion, a growth of 19% as compared to revenues of Q42019. Diluted earnings per share on a GAAP basis was $2.88, up 51% year-on-year. Overall volume for Q42020 was up 15% year-on-year. Meanwhile, the tools & storage segment saw the most growth at 25% when compared to segment revenues from Q42019.
Black & Decker CEO James Loree said that in April, the company had benefitted from a boom in DIY projects and other home improvement projects that Americans took to during the summer months. In June, e-commerce growth was exploding. The second half of 2020 saw factories running at record levels amid labor shortages and constantly changing government guidelines related to the pandemic. Mr. Loree listed three trends that will drive future growth. These were more DIY activities, a shift towards e-commerce, and a boom in home improvement as well as home building due to the cyclical nature of the housing market and an urban exodus. The management clearly thinks that its company is a candidate among industrial stocks to buy now.
Stanley Black & Decker’s stock price was $174.84 at the close of day on 26th February 2021. The stock is up 21% on a 1-year basis and up 77% on a 5-year basis. It also pays a dividend, trading at a yield of 1.6% on 26th February 2021.