Jim Cramer Shared His Takes on These 11 Stocks

4. Stanley Black & Decker, Inc. (NYSE:SWK)

Number of Hedge Fund Holders: 37

Stanley Black & Decker, Inc. (NYSE:SWK) is one of the stocks Jim Cramer shared his take on. Cramer highlighted the company’s latest deal with Howmet, as he commented:

“Finally, there’s the everybody wins kind of M&A. This morning, Stanley Black & Decker sold its aerospace manufacturing business, consolidated aerospace manufacturing to Howmet, a crackerjack aerospace company, for $1.8 billion in cash. This is a terrific deal for Stanley Black & Decker shareholders… because that company needs to repair its balance sheet, hence why the stock rallied 3%. Howmet… can become an even bigger player in aerospace, which is why that stock jumped $4.68.”

Stanley Black & Decker, Inc. (NYSE:SWK) designs and sells hand tools, power tools, outdoor equipment, and storage products. The company also supplies engineered fasteners, attachment systems, and industrial components. During the July 28 episode, Cramer said that the company’s FCF is “going the wrong way.” He stated:

“… Look, it’s not just Dow. We were attracted to two stocks from our Charitable Trust because of their high yields: Best Buy and Stanley Black & Decker… Stanley would benefit from a potential turn in housing because it seemed natural that once the Fed got inflation under control, it would start cutting rates. Both stocks initially soared same thesis. We sold… Stanley at a small loss, thankfully avoiding a much larger downturn later on… Now, when Stanley last came on the show, they told us they don’t expect to turn until 2027, which was disconcerting because it immediately made me feel the dividend could be in jeopardy between now and then, especially because the company has so much exposure to Chinese manufacturing. Right now, Stanley has plenty of coverage, but its free cash flow is going the wrong way, and I think you’d be reaching for yield if you bought this stock here…”