Stanley Black & Decker SWK Soars 9.34% on Three-Day Rally to 2025 High on Cost-Cutting Gains

Shares of Stanley Black & Decker (SWK) climbed 4.92% on Thursday, marking a three-day rally of 9.34% and pushing the stock to its highest level since September 2025, with an intraday gain of 4.94%. The surge reflects renewed investor confidence in the company’s operational improvements and strategic cost-cutting measures.

The recent momentum follows the success of SWK’s multi-year global cost-reduction program, which has delivered $1.8 billion in pre-tax savings by Q2 2025. The initiative, launched in 2022, has streamlined inventory and supply chain operations, reducing stockpiles by $2 billion. These efficiencies have bolstered investor sentiment, with a 2.7% jump in the stock price immediately following the latest progress report. Analysts highlight that the program’s alignment with long-term margin goals—targeting an adjusted gross margin above 35%—positions the company to sustain profitability amid economic headwinds.

However, broader market dynamics have introduced volatility. Rising U.S. Treasury yields, exceeding 4.2% for the 10-year benchmark, have heightened concerns over stretched equity valuations. Additionally, a recent federal court ruling challenging former President Trump’s global tariffs created uncertainty around trade policies, contributing to a 3.4% drop in SWK’s stock three days prior. These macroeconomic pressures underscore the stock’s sensitivity to geopolitical and monetary policy shifts, despite its internal progress.

Technical indicators present a mixed picture. A bullish Marubozu Black candlestick pattern and positive dividend-related events suggest short-term momentum, but a MACD Death Cross and overbought Williams %R signals indicate potential near-term pullbacks. Fundamentally, while SWK’s earnings per share surged 2016.67% year-over-year, high valuation metrics like an EV/EBIT of 370.69 and a PE ratio of 100.19 raise concerns about sustainability. Institutional skepticism, reflected in a 0.487 block inflow ratio, contrasts with retail investor optimism, creating a tug-of-war in market sentiment.