Stanley Black & Decker is best known for its tools and other handheld power equipment. It also has a sizeable industrial business. However, the pandemic has forced a lot of people to stay at home. Therefore, home improvement and DIY activity have gone up significantly. This trend has increased the demand for companies like Stanley Black & Decker’s tools and equipment. The company has been reporting reasonably good financials as well. As a result, it is among the best industrial stocks to buy right now. Another positive factor for Stanley Black & Decker has been strong home building activity.
More About Stanley Black & Decker’s Business
Stanley Black & Decker has three main business segments, Tools & Storage, Industrial, and Security. During the most recent Q42020 earnings announced in January 2021, the Tools & Storage segment revenues were up 25% year-on-year. Industrial segment revenues were up 10% year-on-year, while the security segment revenues were down 3%. In North America, business in the security segment declined as fewer installations occurred. Europe also saw volumes drop. However, overall revenues for the company were in the green, up 19% as compared with Q42019.
Stanley Black & Decker CEO James Loree said, “We are excited to turn the page on 2020, and we enter 2021 with optimism and a company that is running on all cylinders and gaining momentum. Despite challenging second half comparables, our 2021 outlook calls for positive organic growth, 11% adjusted EPS growth at the midpoint, and another strong free cash flow performance.”
Going by the recent results, Stanley Black & Decker ranks among the top industrial stocks to buy now.
Stanley Black & Decker’s stock closed at $174 on 26th February 2021. The stock was trading at a 1.6% dividend yield and was trading almost flat on a 1-month basis. Stanley Black & Decker has bounced back big time since the March 2020 market fall, gaining 142% since 23rd March 2020.