Stanley Black (SWK) Poised To Gain From Acquired Assets
Zacks Investment Research | Sep 28, 2017 09:48PM ET
We have issued an updated research report on industrial tool maker, Stanley Black & Decker, Inc. (NYSE:SWK) on Sep 26. We believe that this machinery stock is poised to benefit from solid long-term growth opportunities. The company’s earnings are projected to grow 10.3% in the next three to five years.
In the first half of 2017, the company’s shares yielded 23.8% return. Below we briefly discuss the company’s potential growth drivers.
Diversification Benefits: We believe Stanley Black & Decker is poised to benefit from its diversified customer base in the educational, financial and healthcare institutions as well as in the commercial, governmental and industrial end markets. Its Security segment deals with mechanical and electronic security products as well as a variety of security services. Its Industrial segment manufactures and markets mechanic tools and storage systems, engineered healthcare storage systems, hydraulic tools and accessories, plumbing, heating and air conditioning tools, assembly tools and systems, and specialty tools. Its Tools & Storage segment deals in hand tools, consumer mechanical tools, storage systems, pneumatic tools and fasteners.
Furthermore, international diversity has played a major role in Stanley Black & Decker’s profitability over time. Notably, in second-quarter 2017, it derived nearly 55% of net revenues from its operations in the United States while the rest were secured from Canada, Europe, Emerging markets, Japan and Australia.
We believe that such diversified business structure makes the company more competitive compared with other major players in the Zacks Investment Research
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