"This too shall pass" is an ancient saying that supports an investment in Stanley Black & Decker (NYSE: SWK) today. The problem for investors right now is that the time it takes the company to work through what has become a very deep business downturn may end up being measured in years, not months. When the company reports earnings on February 2, the news will likely be mostly bad.

As an industrial stock, Stanley Black & Decker's business is inherently cyclical, with financial results rising and falling along with economic activity. Only a large portion of the company's power tool sales run through hardware stores, which sell to both the professional set and general consumers. Consumers tend to react more quickly and deeply with regard to spending cuts than business/professional customers. That leaves Stanley Black & Decker with material "short cycle" exposure, meaning its business tends to falter quickly when the economy sours.

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Source Fool.com