3 Reasons to Buy Stanley Black & Decker Stock Right Now

Stanley Black & Decker (NYSE: SWK) is one of the most compelling investment opportunities in the industrial sector. A combination of operational improvements, growth opportunities, and disappearing cost headwinds means earnings are set for strong expansion in the coming years. Stanley is well worth a look for value and growth investors alike. Here are three reasons why.

As CEO Jim Loree outlined during the recent earnings call, Stanley has suffered "significant external headwinds caused by tariffs, cost inflation, and FX [foreign exchange] pressures, all totaling approximately $1 billion of unfavorable margin impact" and acting in the 2018-2020 period. To put this figure into context, Stanley's earnings before interest, taxation, depreciation and amortization was $2.5 billion in 2019.

Stanley Black & Decker is benefiting from a surge in interest in DIY due to stay-at-home measures. Image source: Getty Images.

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Source Fool.com