What Happened?
Shares of manufacturing company Stanley Black & Decker (NYSE: SWK) jumped 2.7% in the morning session after investors reacted positively to the ongoing success of the company's global cost-reduction program. The multi-year initiative, launched in mid-2022, is designed to enhance profitability by resizing the organization, lowering inventory, and optimizing the supply chain. To date, the program has successfully delivered approximately $1.8 billion in pre-tax run-rate savings and has cut inventory levels by over $2 billion. In the second quarter of 2025 alone, Stanley Black & Decker realized about $150 million in savings. The company is on track to achieve its target of $2 billion in pre-tax run-rate savings by the end of 2025, which is expected to support its long-term goal of an adjusted gross margin above 35%.
After the initial pop the shares cooled down to $77.48, up 3.7% from previous close.
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What Is The Market Telling Us
Stanley Black & Decker’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 3 days ago when the stock dropped 3.4% on the news that the major indices continued to retreat amid profit-taking and renewed concerns about tariffs. Investors reacted to a federal court ruling that most of President Trump's global tariffs were illegal, raising uncertainty over trade policy and the fiscal impact of potential refunds. Rising Treasury yields added to the pressure, with the 10-year climbing above 4.2% and the 30-year nearing 5%, intensifying worries about stretched equity valuations. September's historically weak track record for stocks further dampened sentiment, leaving traders cautious ahead of the jobs report later in the week and the Federal Reserve's upcoming rate decision.
Stanley Black & Decker is down 3% since the beginning of the year, and at $77.48 per share, it is trading 29.6% below its 52-week high of $110.13 from September 2024. Investors who bought $1,000 worth of Stanley Black & Decker’s shares 5 years ago would now be looking at an investment worth $497.94.
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