Shares of Stanley Black & Decker tumbled on Tuesday as the company reported quarterly earnings, a move Jim Cramer said investors should take advantage of. Shares of the tool maker fell nearly 12% on Tuesday after reporting third-quarter revenue and its implied fourth-quarter guidance that fell short of Wall Street expectations. Still, Jim thinks the decline is unwarranted. “I would buy this stock,” he said on “Squawk on the Street.” “I would aggressively buy the stock.” That’s because the quarter wasn’t as bad as the market reaction suggested. “It wasn’t a bad quarter,” Jim said. “On the call,[management]said, ‘Listen. We don’t have the numbers we want.’ … That’s because before you make a decision, you need to have some idea or belief that your home is going to increase in value.” . Additionally, the stock still has a key catalyst on the horizon – the Federal Reserve’s easy monetary policy, as the Fed continues to lower borrowing costs, activity in the housing market should pick up, increasing demand for Stanley Black & Decker’s instruments. The bond market in recent weeks doesn’t lend itself to that thesis, but we’re not throwing in the towel just yet. “If you believe a rate cycle is coming, this is the stock to buy,” Jim added. “The first trade wasn’t the right trade.” (Jim Cramer’s charitable trust bought SWK. See here for a full list of stocks.) As Jim Cramer As a subscriber to Jim Cramer’s CNBC Investing Club, you will receive trade alerts before Jim Cramer makes his trades. Jim waits 45 minutes after sending a trade alert before buying or selling stocks in his charitable trust portfolio. If Jim talked about a stock on CNBC TV, he would wait 72 hours after issuing a trade alert before executing the trade. The investment club information above is subject to our Terms and Conditions and Privacy Policy and our Disclaimer. No fiduciary duty or obligation is created or created by any information you receive in connection with the Investment Club. No specific results or profits are guaranteed.
Stanley Black & Decker power drills are on display for sale at a Home Depot store in Colma, California.
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Stanley Black & Decker The company’s stock price plummeted after the company reported quarterly earnings on Tuesday, and Jim Cramer said investors should take advantage of the move.
