First Read Stanley Black & Decker Inc: 2Q beat on stronger margin. FY guidance raised

Research evidence excerpt

First Read Stanley Black & Decker Inc: 2Q beat on stronger margin. FY guidance raised

Forecast returns

Forecast price appreciation 0.9%

Forecast dividend yield 3.7%

Forecast stock return 4.6%

Market return assumption 9.3%

Forecast excess return -4.7%

Company Description

Stanley Black & Decker is primarily a global provider of hand tools, power tools, outdoor

power equipment and related accessories. It also provides engineered fastening systems and

products, and equipment used in infrastructure applications.

Valuation Method and Risk Statement

Our price target is based on relative NTM P/E. Risk Statement: The Electrical Equipment and

Multi Industry sector faces a broad range of risks. It is cyclical in nature with exposure to the

underlying cycles inherent in everything from aviation, auto, trucking and trains to

construction and consumer electronics to mining, power, oil and gas and more depending on

the specific stock. EEMI companies are subject to risks associated with unexpected changes in

the underlying global macro environment, currency and interest rate movements, commodity

price inflation as well as company-specific execution, M&A, integration, labor relations and

changes in the competitive or regulatory environment. These changes can be in the form of

product technology, e-commerce and other digital disruption and/or channel

disintermediation. Changes in the overall macro environment can result from health

emergencies such as COVID-19 and other pandemics. Capacity and related pricing pressures

are also a risk through the cycle. Finally, these multinational companies are subject to policy

changes taking place in the United States and internationally, including those related to

environmental regulation and tariffs. Specifically to SWK, through its Tools & Storage