This Dividend Stock Is Turning Its Fortunes Around
It's been a tough year for Stanley Black & Decker (NYSE: SWK). That said, investors don't buy stocks for what's happened in the past; they buy them for what could happen in the future. So, in this regard, the stock and its 3.7% dividend yield are worth looking at. There's a turnaround story in place, and despite some potential headwinds, the stock seems to be a good value.
The company's supply chain issues have been deeper, and raw material costs have been far higher than management expected at the start of the year. Meanwhile, the slowdown in consumer spending has significantly reduced its sales expectations. The result is management's outlook of full-year adjusted earnings per share (EPS) of $5 to $6, compared to guidance of $12 to $12.50 given in February. It's a massive reduction in earnings expectations, and the market has punished the stock by taking it down nearly 55% so far this year.
With the bad news out of the way, let's look at the investment case -- including both the positives and the negatives -- for the stock.
Source Fool.com
