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Shares of Stanley Black & Decker (NYSE:SWK) are down over 20% over the last few months. It has been a combination of tariff fears and the impact of rising rates that have sent shockwaves
Stanley Black & Decker Is Too Cheap To Ignore
Summary
- Stanley Black & Decker's shares have recently dropped over 20% due to tariff fears and rising interest rates, but these risks seem overblown.
- The company has struggled with bloated inventory and lower gross margins since 2021 but is expected to recover by 2026.
- Valuation is attractive with a Forward P/E of 16X and a trailing P/S of 0.89.
- Despite interest rate and tariff concerns, SWK is well-prepared, and shares could double by 2030 with margin improvements and renewed sales growth.
I have twenty years of experience researching, writing and investing in public markets.
I focus on two types of investments. Firstly, companies with durable competitive advantages. Secondly, I conduct due diligence on small cap special situations.
I was a licensed broker and attorney.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of SWK either through stock ownership, options, or other derivatives. 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.
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