Snap-on Incorporated: A Resilient Player in the Tools Market
Kenosha, Wisconsin-based Snap-on Incorporated (SNA) is well-known for designing, manufacturing, and marketing tools and equipment aimed at professionals in the transportation industry. With a market cap of $18 billion, Snap-on operates through four key segments: Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services.
Large-Cap Status and Stock Performance
Companies valued at $10 billion or more are categorized as “large-cap stocks.” Snap-on exceeds this mark, highlighting its significant size and influence in the tools manufacturing sector.
The company’s stock reached an all-time high of $373.89 on November 27 and is currently trading at 8.1% below this peak. In the last three months, Snap-on’s shares have surged by 21.4%, clearly outperforming the Industrial Select Sector SPDR Fund (XLI), which saw only minor gains during the same period.
Impressive Year-to-Date Growth
Snap-on’s upward trend is evident not only in the short term but also over a longer period. Year-to-date, the stock has increased nearly 19%, and over the past 52 weeks, it has grown over 20.9%. In contrast, XLI’s gains stand at 17.4% in 2024 and 20.1% for the last year.
To further confirm this positive trajectory, Snap-on’s stock has mostly traded above its 50-day moving average since mid-July and consistently above its 200-day moving average since mid-September.
Strong Q3 Results Drive Investor Confidence
After releasing third-quarter results on October 17, Snap-on’s stock jumped nearly 10%. The company reported impressive margin expansion, with an adjusted EPS of $4.70, surpassing analysts’ estimates by 2.6%. However, net sales fell approximately 1.1% from the same quarter last year to $1.1 billion, largely due to a $19.2 million drop in organic revenues, partially balanced by additional revenue from acquisitions.
Despite market challenges, Snap-on showcased remarkable operational efficiency. The company’s net earnings rose by 3.3% to $251.1 million, benefiting its shareholders.
Competitive Positioning
In 2024, Snap-on has outperformed its peer Stanley Black & Decker, Inc. (SWK), which reported gains of only 16.4% this year and 14.7% over the past 12 months.
Among 11 analysts covering Snap-on stock, the consensus rating is a “Hold.” The average price target stands at $344.67, suggesting modest potential for upside from current levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
