Stanley Black & Decker (NYSE:SWK) has been a stock which triggered my interest as shares have fallen to a fresh 52-week low, having fallen by a fifth after it set a high around $170 late in 2017.
While the pullback is sizeable, and should not be underestimated, note that shares are now trading at similar levels as the spring of 2017, just to put the move into perspective. Hence, continued improvements in the business result in valuation multiples come down a lot, to the extent that they become quite appealing.
The Business
Stanley Black & Decker is best known from its tools and storage equipment business, including the global brands which comprise its name, as well as Irwin, DeWalt, Craftsman and Lenox, among others. These businesses generated $9 billion of the $13 billion in annual revenues reported by the firm, complemented by an industrial and security business, each contributing roughly $2 billion in annual sales.
