Snap-on Incorporated: A Resilient Performer Amid Challenges
With a market capitalization of around $19.5 billion, Snap-on Incorporated (SNA) is a prominent player in tools, equipment, diagnostics, and repair solutions. Founded in 1920 and based in Wisconsin, the company caters to professional users across various industries, including vehicle repair, aerospace, and manufacturing. Snap-on’s products are widely recognized for their quality and are sold through franchisee vans, direct channels, and distributors.
Strong Stock Performance Compared to the Market
SNA’s shares have surged by 34.8% in the past year and 27.8% year-to-date, outperforming the S&P 500 Index ($SPX) which has seen a 31.8% annual return and a 25.8% YTD growth.
Outpacing Industrial Averages
When examining performance more closely, Snap-on’s stock has also surpassed the iShares Global Industrials ETF’s (EXI) return of 26.9% over the past 52 weeks and its YTD gain of 17.8%.
Positive Investor Reaction Despite Mixed Q3 Results
On October 17, Snap-on reported a mixed Q3 earnings report. Despite missing revenue expectations with $1.2 billion, EPS of $4.70 exceeded projections by about 2.6% and grew 4.2% year over year. This positive news led to a 9% increase in shares on the same day.
Looking Ahead: Earnings Expectations
For the current fiscal year ending in December, analysts predict a slight year-over-year increase in EPS to $19.05. Snap-on’s track record shows it has surpassed consensus earnings estimates in three of the last four quarters.
Analysts’ Ratings Remain Mixed
Among the 11 analysts covering Snap-on, there is a consensus rating of “Hold,” which includes two “Strong Buy,” one “Moderate Buy,” seven “Hold,” and one “Moderate Sell” recommendation. This assessment has remained stable over the past three months.
Price Target Adjustments Indicate Future Growth
Although SNA shares are currently trading above the average analyst price target of $336.17, Tigress Financial raised its price target to $385 on October 25, maintaining a “Buy” rating. This indicates that the stock could potentially rise by 4.3% from current levels.
On the date of publication, Anushka Mukherjee 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.
