Stanley Black & Decker: Creating Value, Buying Value

Dec. 09, 2022 11:06 PM ETStanley Black & Decker, Inc. (SWK), SWKDP19 Comments
Yannick Frey profile picture
Yannick Frey
1.03K Followers

Summary

  • Stanley Black & Decker grew strongly in 2021 due to the housing boom while the Fed cut interest rates.
  • Now the EV/Sales ratio is almost at 2008 levels, this indicates that the company is extremely favorably valued.
  • I expect the stock to move sideways at first, after which the stock will start a strong advance when the quarterly figures show a positive outlook.
  • Now is a great buying opportunity because the company is lowering its costs and improving its gross margin.

Stanley To Buy Black And Decker

Joe Raedle

Introduction

Stanley Black & Decker (NYSE:SWK) is a stock that experienced a strong rally since the corona crisis until mid-2021, after which the share price plummeted until now.

Until mid-2021, the stock price rose over the past 10 years. Its

Chart
Data by YCharts

Company Overview - Stanley Black & Decker 2021 Annual Report

Company Overview (Stanley Black & Decker 2021 Annual Report)

More Streamlined Company With Great Franchises - Stanley Black & Decker 3Q22 Investor Presentation

More Streamlined Company With Great Franchises (Stanley Black & Decker 3Q22 Investor Presentation)

SWK Financial Results - SEC and Author's Own Graphical Visualization

SWK Financial Results (SEC and Author's Own Graphical Visualization)

Stanley Black & Decker 2022 Guidance - 3Q22 Investor Presentation

Stanley Black & Decker 2022 Guidance (3Q22 Investor Presentation)

Dividend Growth History - SWK Seeking Alpha Ticker Page

Dividend Growth History (SWK Seeking Alpha Ticker Page)

Chart
Data by YCharts

This article was written by

Yannick Frey profile picture
1.03K Followers
Yannick is a passionate investor from the Netherlands who shares his analyses with other investors on Seeking Alpha. In doing so, he looks for companies with the following characteristics:1. Companies that are growing in both revenue, earnings and free cash flow.2. Companies that have excellent growth prospects.3. Stocks with favorable valuations.He prefers steadily growing companies with high free cash flow margins, dividend stocks and stocks with generous share repurchase programs.Disclaimer: My articles do not provide financial advice, they reflect my own findings and insights.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in SWK over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Recommended For You

Comments (19)

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.