Why Shares of Stanley Black & Decker Slumped in March
Shares in tools, storage, and industrial products company Stanley Black & Decker (NYSE: SWK) fell 14.1% in March, according to data provided by S&P Global Market Intelligence. The move comes down to the likelihood that the company's earnings guidance will come under pressure in 2022.
The pessimism is due to the increase in raw material costs, such as steel, because of the onset of war in Ukraine. Unfortunately, Stanley Black & Decker has a recent history of suffering margin compression due to cost pressures, so when raw material and supply chain costs rise, investors naturally fear the worst.
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Source Fool.com