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Globe and Mail
02-07-2025
- Business
- Globe and Mail
Why Stanley Black & Decker Stock Trounced the Market on Tuesday
The latest executive hire by Stanley Black & Decker (NYSE: SWK) continued to be well received on Tuesday, a day after it was announced. This was bolstered by an analyst's price target rise, although that pundit left his rather lukewarm recommendation intact. Stanley Black & Decker's shares ended the day almost 4% higher in price, essentially obliterating the S&P 500 index with its 0.1% decline. Major C-suite changes coming In an endorsement of the ever-popular "promote from within" corporate policy, Stanley Black & Decker announced on Monday that current COO Christopher Nelson will become its CEO on October 1. Nelson, who also serves as the company's president of the tools and outdoor segment, replaces outgoing CEO Donald Allan. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The departing CEO, already on the company's board of directors, will become executive chair of the board on that date. In its announcement of the transition, Stanley Black & Decker felt compelled to mention that it continues to expect its second-quarter GAAP (generally accepted accounting principles) and non-GAAP (adjusted) earnings to come in above its previously released guidance. This is always music to investors' ears. A notable price target lift The day after, prior to market open, Stanley Black & Decker got something of a thumbs-up from an analyst at a top U.S. bank. Joseph O'Dea of Wells Fargo raised his price target on the stock at a double-digit rate, cranking it to $70 per share from his previous $60. That gave its latest moves something of an endorsement, even though O'Dea maintained his equal weight (neutral) recommendation on the stock. Stanley Black & Decker does have a brighter future than that, in my view, but much will depend on the ever-impactful U.S. housing market. If that market can perform well and thrive, we should see quite a positive effect on the company's business. Should you invest $1,000 in Stanley Black & Decker right now? Before you buy stock in Stanley Black & Decker, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Stanley Black & Decker wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $722,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $968,402!* Now, it's worth noting Stock Advisor 's total average return is1,069% — a market-crushing outperformance compared to177%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 30, 2025
Yahoo
01-07-2025
- Business
- Yahoo
Why Stanley Black & Decker Stock Trounced the Market on Tuesday
Investors remained bullish about the storied tool company's latest hire and its forecast for second-quarter earnings. An analyst also weighed in with a positive take on the news. 10 stocks we like better than Stanley Black & Decker › The latest executive hire by Stanley Black & Decker (NYSE: SWK) continued to be well received on Tuesday, a day after it was announced. This was bolstered by an analyst's price target rise, although that pundit left his rather lukewarm recommendation intact. Stanley Black & Decker's shares ended the day almost 4% higher in price, essentially obliterating the S&P 500 index with its 0.1% decline. In an endorsement of the ever-popular "promote from within" corporate policy, Stanley Black & Decker announced on Monday that current COO Christopher Nelson will become its CEO on October 1. Nelson, who also serves as the company's president of the tools and outdoor segment, replaces outgoing CEO Donald Allan. The departing CEO, already on the company's board of directors, will become executive chair of the board on that date. In its announcement of the transition, Stanley Black & Decker felt compelled to mention that it continues to expect its second-quarter GAAP (generally accepted accounting principles) and non-GAAP (adjusted) earnings to come in above its previously released guidance. This is always music to investors' ears. The day after, prior to market open, Stanley Black & Decker got something of a thumbs-up from an analyst at a top U.S. bank. Joseph O'Dea of Wells Fargo raised his price target on the stock at a double-digit rate, cranking it to $70 per share from his previous $60. That gave its latest moves something of an endorsement, even though O'Dea maintained his equal weight (neutral) recommendation on the stock. Stanley Black & Decker does have a brighter future than that, in my view, but much will depend on the ever-impactful U.S. housing market. If that market can perform well and thrive, we should see quite a positive effect on the company's business. Before you buy stock in Stanley Black & Decker, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Stanley Black & Decker wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $722,181!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $968,402!* Now, it's worth noting Stock Advisor's total average return is 1,069% — a market-crushing outperformance compared to 177% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Wells Fargo is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Stanley Black & Decker Stock Trounced the Market on Tuesday was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
Stanley Black & Decker Says COO to Take Over as CEO in October
Stanley Black & Decker on Monday said its COO Christopher Nelson will take over as CEO on Oct. 1. Current CEO Donald Allan will spend a year as executive board chair before retiring in October 2026. The tool maker said it expects second-quarter profits to come in higher than it previously Black & Decker (SWK) announced a CEO transition plan on Monday, with COO Christopher Nelson set to take over the top job as of Oct. 1. Current CEO Donald Allan will become executive chair of the tool maker's board at the same time, and is expected to retire a year later, the company said. "I am energized by the opportunity ahead and look forward to working together with the Board and our teams around the world to deliver on the amazing potential for our brands and innovation in the marketplace," Nelson said. "I am confident we have created a strong foundation with our transformation that positions the Company for sustainable long-term growth and value creation." The maker of its namesake tool brands along with others like Craftsman and DeWalt, also said Monday that it continues to expect second-quarter profits to come in higher than the company originally forecast. In its first-quarter earnings call on April 30, CFO Patrick Hallinan said the company expected positive adjusted pre-tax earnings, despite its projected "heavy tariff burden," according to a transcript from AlphaSense. The tool maker also said in the quarterly report that it had already raised prices, and was planning to do so again due to the impact of tariffs. Shares of Stanley Black & Decker were up about 1% in premarket trading. They entered the day down just over 15% since the start of the year. Read the original article on Investopedia Sign in to access your portfolio
Yahoo
13-05-2025
- Business
- Yahoo
Stanley Black & Decker raises prices to mitigate tariff impacts
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. By the numbers: Q1 2025 Revenue: $3.7B Down 3% year over year Net Earnings: $90.4 million Up nearly 4x YoY EPS: 60 cents Versus 13 cents YoY Stanley Black & Decker is raising its prices and retooling its supply chain to mitigate tariff impacts, executives said on an April 30 earnings call. The tools manufacturer hiked prices by high single-digits in April across U.S. retailers, with talks underway for another increase over the summer, Christopher Nelson, COO, EVP and President of the Tools & Outdoor division, said during the call. In addition to pricing actions, Nelson said the company is making supply chain moves to become more compliant with the U.S.-Mexico-Canada agreement and reduce its manufacturing footprint in China. Stanley Black & Decker is anticipating a full-year headwind of 75 cents per share from tariff impacts, after taking into account actions like pricing and supply chain adjustments. For context, the company posted earnings of 60 cents per share in the first quarter. The maker of brands such as DeWalt and Craftsman is also actively engaged in talks with the U.S. administration regarding tariffs. During the call, President and CEO Donald Allan said the company plans to continue its trade policy discussions while navigating the uncertain environment. 'While the magnitude and frequency of these changes has exceeded our expectations, we have been and remain prepared to address this dynamic trade environment, and we are responding,' Allan said. Over the next one to two years, Stanley Black & Decker reported that it will accelerate supply chain adjustments by leveraging its North American footprint, notably Mexico, while reducing tariff costs in China. The company has worked to move the U.S. cost of goods sold out of China for years. Approximately 15% of the tool maker's supply chain for the U.S. comes from China, Nelson said. The company wants this activity to end by roughly 2027, he added. 'This is a high priority and will remain a key focus even if China tariffs go to lower levels,' Nelson said. Stanley Black & Decker is also looking to increase its USMCA compliance. Currently, less than one-third of the company's Mexico supply for the U.S. is able to enter the country tax-free through the trilateral trade deal, Nelson said. The company is looking to improve that through a number of mitigation actions, including moving dual-sourced SKUs out of China and into Mexico, Nelson added. 'We are thoughtfully and aggressively navigating the path forward as we focus on serving our customers, optimizing our cost structure, and protecting cash flow as we position the business to achieve its long-term potential,' he said. 'These environments present as many opportunities as there are challenges, and we are squarely focused on both.' Stanley Black & Decker's Q1 revenue totaled $3.7 billion, down 3% over last year. Results were weighed down partially by an infrastructure divestiture and slower customer sales amid an uncertain economic backdrop, according to the report. The tools maker posted Q1 net earnings of $90.4 million compared to $19.5 million a year ago. Gross margins improved to 29.9% for the quarter, up 130 basis points compared to last year. This was driven largely by supply chain efficiencies unlocked from the company's cost savings and growth transformation strategy launched in 2022, executives said. Stanley Black & Decker also sold its attachment tools business for $760 million in cash on April 1, 2024, which was not reflected in last year's first quarter results. The tool maker's latest results beat Wall Street estimates, according to a consensus of analysts at Zacks Equity Research. Sign in to access your portfolio
