Why Shares in Stanley Black & Decker Surged in January
Shares in Stanley Black & Decker (NYSE: SWK) rose 18.9% in January, according to data from S&P Global Market Intelligence. The move comes in line with a greater appetite for risk in the market. The S&P 500 rose 6.2% in the period, and investors warmed to the value proposition at Stanley Black & Decker, a company whose DIY tools sales are challenged by a weakening housing market.
In addition to the potential for the stock to recover as the company eventually recovers from the slowdown, investors are attracted by the Dividend King's 3.5% dividend yield. Moreover, its collection of highly regarded and well-known brands, ranging from DIY tools such as Craftsman to more professional tools such as DeWalt and Irwin, give it a strong foothold in the marketplace.
The company undoubtedly has long-term growth potential from introducing new products such as cordless power tools and outdoor electric equipment. Moreover, management has restructured the company by divesting its security and access doors businesses in 2022 and refocusing on tools and outdoor products.
Source Fool.com
