Players in the Zacks Manufacturing-Tools & Related Products industry are gaining from improved manufacturing activities as the severity of the pandemic has softened from the second quarter of 2020. Also, a surge in business in the e-commerce platform and a heightened demand for DIY products are acting as tailwinds.
However, existing end-market challenges due to the pandemic are clouding the industry players’ growth momentum. Also, a highly leveraged balance sheet is concerning. Two companies namely Stanley Black & Decker, Inc. (SWK) and Lincoln Electric Holdings, Inc. (LECO) are selected to watch for now.
About the Industry
The Zacks Manufacturing-Tools & Related Products industry comprises companies that develop and distribute hand and mechanics tools, hydraulic tools, engineered fastening systems and motion-control systems. Arc welding products, oxy-fuel cutting equipment, plasma cutters, storage system and other related products are also produced by some tool-makers.
The highly-advanced tools are used in industrial, commercial, oil