Stanley Black & Decker is a diversified global manufacturer and marketer of power tools, security solutions, and engineered fastening systems. The company operates through four business segments: Tools & Storage, Security, Industrial, and Infrastructure. The company's products are sold to a variety of customers, including professional and industrial users, as well as home improvement retailers. The company operates in over 175 countries, and has a strong brand presence and reputation for innovation, quality and reliability. The company has a market cap of $12.4 billion and revenue of $4.12 billion. The company's focus on innovation, productivity, and efficiency has been a key driver of its financial performance.
Stanley Black & Decker (SWK) owns a number of well-known brands across a variety of industries.
Tools & Storage:
- DeWalt
- Craftsman
- Irwin
- Lenox
- Proto
Security:
- Kwikset*
- Weiser*
- Baldwin*
- National Hardware
EDIT to add: Spectrum Brands acquired SWK's Hardware & Home Improvement Group for $1.4B in 2012)*
Industrial:
- Lista
- Vidmar
- Interlake Mecalux
- CribMaster
- Bostitch
Infrastructure:
- Powers Fasteners
- AeroScout
- DEWALT Mobilelock
- Lenox Industrial Tools
These are just a few examples of the many brands that Stanley Black & Decker owns. The company continues to expand its portfolio through acquisitions and internal innovation.
The company has been in a downtrend in recent quarters possibly due to slowing construction activity and reduced real estate development despite high demand for new housing. SWK is expected to report earnings in February, and the dividend king currently has a 3.82% annual yield. Technically minded investors might also see the falling wedge and double bottom as good signs.
Trade idea: Overall bullish outlook on this cyclical stock. Here is a trade idea to supplement being long shares that will allow you to capture some additional gains while also shielding against further dips. This call spread with short put trade on SWK can make up to 11% and the price can fall 23% at maturity before losing any capital.
Buy 1 $90 call
Sell 1 $95 call
Sell 1 $70 put
All expiring 1/19/24
Capital required for cash secured puts: $6782
submitted by /u/OliveInvestor
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