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The market's recent pullback has created several moderate-risk, bargain-basement-price stocks, and one worth an evaluation is Black & Decker.

The Black & Decker Corporation (NYSE: BDK) is a global manufacturer and marketer of power tools and accessories, hardware, home improvement products, and fastening systems.

Analysts expect BDK's recent restructuring to improve productivity and operating margins. In general, analysts are forecasting low-single-digit sales growth for 2008 and 2009, weighed down by the housing sector's doldrums.
Meanwhile, BDK's fastening/assembly unit business should improve somewhat, offsetting housing's likely sub-par performance, and register mid-single-digit sales growth. The Reuters FY 2008/FY 2009 EPS consensus estimates for BDK are $1.14 to $1.57.
The risks? Analysts are keeping an eye on BDK's core component/raw material costs. A sustained U.S. economic downturn would also, obviously, hurt BDK's results. Given recent economic data points, a slowdown is a not a low-probability concern. Still, with BDK's demonstrated business model, power tool position, and p/e of about 10, the risk/return here is attractive.

The First Call mean rating for BDK is: Hold [11 firms.] Mean 2008 target: $75.00 [high: $92, low: $62].

Stock Analysis: Black & Decker is a moderate-risk stock not suitable for low-risk investors. Investors with an investment horizon longer than 2 years should be rewarded from BDK's shares. Sell / Stop Loss if you were to purchase shares in this company: $47.

Disclosure: Lazzaro has no positions in stocks. In addition to private real estate holdings, he owns corporate and municipal bonds, and cash certificates of deposit.