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Jim Cramer Says Stanley Black & Decker’s Deal With Howmet Is “Terrific” for SWK Shareholders
Yahoo Finance· 2025-12-28 16:16
Group 1 - Stanley Black & Decker sold its aerospace manufacturing business to Howmet for $1.8 billion in cash, which is seen as a beneficial deal for shareholders as it helps repair the company's balance sheet [1] - Following the deal, Stanley Black & Decker's stock rallied by 3%, while Howmet's stock increased by $4.68, indicating positive market reactions for both companies [1] - The company has been facing challenges with its free cash flow, which is reportedly "going the wrong way," raising concerns about its dividend sustainability until at least 2027 [2] Group 2 - Stanley Black & Decker's exposure to Chinese manufacturing is a significant risk factor, and the company is currently in a position where it has sufficient coverage but is still facing cash flow issues [2] - The potential for a housing market recovery could benefit Stanley Black & Decker, especially if the Federal Reserve begins to cut rates after controlling inflation [2] - Despite the potential upside, there are suggestions that certain AI stocks may offer better investment opportunities with less downside risk compared to Stanley Black & Decker [2]