2023-03-31 05:25:00 ET
Stanley Black & Decker (NYSE: SWK) is an industrial company that owns a collection of iconic tool brands. It built that portfolio up via a series of acquisitions that have left it with a heavier-than-normal debt load. As the economy weakened in 2022, so did the company's financial results. It's only going to get worse in 2023. But here's why I have no plans to sell my shares right now.
No two companies are alike, which is part of the reason why investing is so interesting and so difficult. As briefly highlighted above, Stanley Black & Decker is facing a series of challenges right now that will take time to fix. Some were self-imposed (using debt to fund acquisitions), while others were simply a part of the company's business ( industrial businesses are inherently cyclical ).
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For further details see:
Was Buying Stanley Black & Decker a Big Mistake Now That Things Have Worsened?