Loree said sales this quarter were "off the charts," with 41% growth in North America, 47% in Europe and an 80% increase in the UK. He said what started as a stay-at-home spike has evolved into a long-term trend.
Loree added that 10% to 12% growth would be considered normal in their business, which makes the current environment even more remarkable.
He noted that technology is also helping to boost sales. Never before has more DIY information been available on platforms like YouTube.
Stanley Black & Decker isn't sitting idly by, however. The company is investing in the business, hiring engineers and retail associates to spur innovation and accelerate growth.
In our last review of SWK on October 9 we wrote that "Traders who are long SWK from our July 20 recommendation - " Aggressive traders could go long SWK at current levels and they can add on strength. Risk a close below $138 for now. Targets start at $175 and range up to $240 and $267 longer term" could raise stop protection to $160 now. Our new price targets are the $220 area and then $240."
Prices have firmed since our last review in October and have yet to reach our first target area. Let's check the charts to see if our strategy needs any changes.
In this daily bar chart of SWK, below, we can see that prices have rallied the past 12 months. Prices traded sideways from October to late February but then resumed the advance. SWK is trading above the rising 50-day moving average line and above the rising 200-day line.
The On-Balance-Volume (OBV) line has been rising the past three months to a new high to confirm the price gains as buyers are being more aggressive.
The Moving Average Convergence Divergence (MACD) oscillator crossed to the downside in early April but could turn upwards again as the two moving averages that make up this indicator are very close together.
In this weekly Japanese candlestick chart of SWK, below, we can see a longer-term uptrend. Prices are above the rising 40-week moving average line. The weekly OBV line is strong and close to making a new high to confirm the price rise. The MACD oscillator is bullish but does show some slight narrowing in recent weeks.
In this daily Point and Figure chart of SWK, below, we can see that prices have reached an upside price target in the $208 area.
In this weekly Point and Figure chart of SWK, below, we can see a longer-term price target in the $289 area.
Bottom line strategy: Continue holding SWK longs but raise stop protection to $185 from $160. Our price targets are $220, $240 and then the $280 area.