We recently published a list of 11 Blue Chip Stocks to Invest in at 52-Week Lows. In this article, we are going to take a look at where Stanley Black & Decker, Inc. (NYSE:SWK) stands against other blue chip stocks to invest in at 52-week lows.
For the first time since 2023, the S&P 500 was seen in the market correction territory, according to US Bank (Wealth Management). The rapid fall surprised several investors, mainly considering the favorable underlying conditions US stocks carried into 2025. The broader markets are reacting primarily to the potential economic consequences of the Trump administration’s policies. Most critical are the new trade policies focused on raising tariffs for goods imported to the US. According to Rob Haworth, senior investment strategy director with U.S. Bank Asset Management, the uncertainty remains the key driver around the market’s recent decline. There are increased concerns related to the potential economic weakness, mainly because of tariff impacts.
Sector Performance in 2025
As per US Bank (Wealth Management), in 2023 and 2024, stocks were aided by consistent economic growth as technology stocks dominated the broader market performance. The revenues of technology companies were aided by significant spending on AI-related investment. As per Haworth, it is of utmost importance for other sectors to make increased earnings contributions. In the early months of 2025, there was a shift in investor sentiment. The sectors that supported the prior year’s market performance, i.e., IT, communication services, and consumer discretionary, have been dragging the market down.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Underlying Fundamentals Remain Strong
US Bank (Wealth Management) stated that the markets fluctuated through most of Q1 2025. That being said, by February 19, the S&P 500 gained 4.5%, says the firm. Furthermore, the firm added that YTD through March 17, the broader S&P 500’s total return was down 3.23%. This comes after 2 years of 25%+ S&P 500 total returns. Despite the uncertainty, for the time being, many underlying fundamentals remain positive. According to Eric Freedman, chief investment officer for U.S. Bank Asset Management, the consumers remain in a good spot, and companies are flush with cash.
As per Haworth, while US markets were impacted in Q1 2025, global stocks delivered positive returns. In the current environment, Haworth believes that a globally diversified portfolio places the investors in a position to capitalize on numerous opportunities. Notably, investors tend to respond to the perceived potential corporate earnings based on specific policies or events. Even though there have been struggles in early 2025, most of the underlying data is favorable.
Our Methodology
To list the 11 Blue Chip Stocks to Invest in at 52-Week Lows, we sifted through the holdings of SPDR S&P 500 ETF Trust and shortlisted the stocks trading close to their respective 52-week lows. Next, we mentioned hedge fund sentiments around each stock, as of Q4 2024. Finally, the stocks were arranged in ascending order of their hedge fund sentiments.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A toolbox filled with an array of different tools, representing the professional products of the company.
Stanley Black & Decker, Inc. (NYSE:SWK)
Stock Price as of March 25: $80.47
52-week Low: $77.7
Number of Hedge Fund Holders: 34
Stanley Black & Decker, Inc. (NYSE:SWK) offers hand tools, power tools, outdoor products, and related accessories. The company’s stock has received a “Buy” rating by Jefferies analyst, Jonathan Matuszewski. The analyst’s rating is backed by its strategic transformation and market positioning. It has witnessed a strong transformation, which is projected to substantially culminate, reducing the execution risks. As per the analyst, the transformation consists of inventory and debt reduction, and divestitures, together with an agile organizational structure, placing it well for future growth.
Furthermore, the analyst has highlighted the positive market conditions benefiting Stanley Black & Decker, Inc. (NYSE:SWK). The aging housing stock in the US can fuel higher spending on residential repairs and renovations, driving demand for power tools, where it remains well-positioned. Also, the momentum of DEWALT, together with the stabilization in the CRAFTSMAN and STANLEY brands, further aids the growth outlook. In FY 2024, Stanley Black & Decker, Inc. (NYSE:SWK) witnessed continued gross margin expansion, healthy FCF generation, strengthening of balance sheet, and making new investments focused on fueling market share growth.
Ariel Investments, an investment management company, released its Q4 2024 investor letter. Here is what the fund said:
“Alternatively, shares of Stanley Stanley Black & Decker, Inc. (NYSE:SWK) traded lower on mixed earnings results. Although organic revenue growth declined on lower sales volumes, solid cost containment drove a bottom-line beat. Meanwhile, SWK’s transformation initiatives remain on track. The company delivered margin expansion by realizing savings from sourcing initiatives, productivity improvements and cost efficiencies. Though the macroeconomic backdrop remains challenging, management is cautiously optimistic lower interest rates will drive consumer demand. We have conviction in SWK’s experienced executive management team and think the balance sheet is well positioned to weather the storm.”
Overall, SWK ranks 11th on our list of blue chip stocks to invest in at 52-week lows. While we acknowledge the potential of SWK as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than SWK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.