Stanley Black & Decker: A Tool Trade

05/08/2017 2:50 am EST


Briton Ryle

Editor, The Wealth Advisory

Stanley Black & Decker (SWK) has been setting the standard for excellence. You’re already probably very familiar with the Black & Decker and DEWALT lines of hand and power toolssuggests Brit Ryle, editor of The Wealth Advisory.

But that’s just the tip of the iceberg, here. SWK is also engaged in hospital and healthcare services, security, pipelines, infrastructure, and the transportation industry. Its products are an integral part of cars, trucks, trains, appliances, and electronics around the world.

It also provides solutions to keep many of the world’s most prominent and well-recognized schools, hospitals, governments, retailers, financial service institutions, even airports safe.

It also provides tools and services for big jobs, like building roads, repairing utilities, raising bridges, and laying railroads. If "the Donald" gets his infrastructure plan passed, Stanley will be supplying the tools that will rebuild the nation.

But it’s not the infrastructure repairs that have me so excited about this stock. It’s the growth at the top line.
It’s got a ton of cash in the bank that it's putting to work buying up smaller companies. And it’s getting great deals on them, too.

Last year, Stanley snapped up Newell Tools for a bargain price of $1.95 billion in cash. A few months ago, it announced plans to acquire Craftsman from struggling Sears (SHLD).

Sears was trying to save money and moved some of the manufacturing offshore. As a result, the quality dropped off. But Stanley is going to change all that and add some big sales in doing so. This could be huge.

I recommend purchasing Stanley Black & Decker as a buy anywhere under $140 per share. The 12-month price target for the stock is $200.

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