Here's Why Stanley Black & Decker Stock Slumped in October, and Why It Could Be a Buying Opportunity

Shares in tools and industrial products company Stanley Black & Decker (NYSE: SWK) slumped by 15.6% in October, according to data from S&P Global Market Intelligence. You have to look no further than the company's third-quarter 2024 earnings report for the reason for the fall. In a nutshell, the company took a step back in its recovery path, and management's commentary indicated that it would take a bit longer than many had anticipated for the company to return margin and inventory to previous levels.The case for buying the stock rests on the idea that the company will reduce its elevated inventory levels by generating sales growth. At the same time, an ongoing cost-reduction plan will cut annual costs by $2 billion by 2025.As such, the toolmaker intends to return its gross profit margin to at least 35% and significantly improve its earnings and cash flow. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool