Stanley Black & Decker reported mixed fourth-quarter results Thursday but beat expectations on the metrics that matter most to our investment thesis — evidence the toolmaker’s turnaround strategy is working to plan. Revenue for the three months ended Dec. 31 totaled $3.74 billion, below the $3.83 billion expected by analysts, according to estimates compiled by LSEG, formerly Refinitiv. Adjusted earnings per share came in at 92 cents, topping the 80-cent estimate, LSEG data showed. Bottom line The roughly 4% decline in Stanley Black & Decker is overdone, giving investors a chance to buy a stock that is poised to benefit from the Federal Reserve likely lowering interest rates later this year . “I would take action on Stanley Black & Decker,” Jim Cramer said Thursday. “We don’t have a lot of stocks that are levered to the Fed ultimately cutting. Those of you who want a play on the Fed cutting rates, this would be the No. 1.” The reason: Lower interest rates would likely spur activity in the housing sector, particularly in the existing home market, which is more likely to see repairing and remodeling from do-it-yourself consumers who have recently been buying fewer tools across the DeWalt, Craftsman, and Black & Decker brands. While the company’s business with professional tool customers has been stronger in recent quarters, including the fourth, an uptick overall consumer demand would go a long way to boosting Stanley Black & Decker’s overall financial performance. However, management said it expects weak consumer demand — including for its outdoor equipment — to continue this year — contributing to the overall softer-than-expected guidance on metrics including revenue growth and earnings per share. That outlook is what is most likely bringing the stock down Thursday. But we think management is ultimately skewing on the conservative side with its guidance assuming a continuation of the current demand picture, supporting our belief that the sellers are…
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