/Snap-on%2C%20Inc_%20logo%20on%20building%20by-Michael%20Vi%20via%20Shutterstock.jpg)
Kenosha, Wisconsin-based Snap-on Incorporated (SNA) is a designer, manufacturer, and marketer of tools and equipment for professional use in the transportation industry. With a market cap of $14.9 billion, Snap-on operates through Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments.
Shares of the tools and equipment manufacturer have underperformed the broader market over the past year. Over the past 52 weeks, SNA stock gained 6.6% compared to the S&P 500 Index’s ($SPX) 27.7% returns. In 2024, SNA dipped 2.3% versus SPX’s 18% gains on a YTD basis.
Zooming in further, SNA has lagged behind the S&P 500 Industrial Sector SPDR’s (XLI) 21.3% returns over the past 52 weeks and 13.4% gains on a YTD basis.
Shares of Snap-on dipped 1.9% following its Q2 earnings release on Jul. 18. The company’s net sales dipped 1% annually to $1.18 billion, missing Wall Street’s expectations. This decline was driven by a 1.1% annual decrease in organic sales and unfavorable foreign currency translation, which was partially offset by acquisition-related sales.
While other segments contributed to revenue growth, the Snap-on Tools Group segment, the company’s largest revenue contributor, experienced a 7.7% annual organic sales decline to $482 million, making investors jittery.
For the current fiscal year, ending in December, analysts expect Snap-on to report an EPS growth of 1% yearly to $18.95. The company’s earnings surprise history is mixed. It surpassed the consensus estimates in three over the past four quarters while missing on another occasion. Its EPS of $4.91 for the last reported quarter missed the projections marginally.
Among the 11 analysts covering the SNA stock, the consensus rating is a “Hold.” That’s based on two “Strong Buy,” one “Moderate Buy,” seven “Holds,” and one “Moderate Sell.”
This configuration has been consistent over the past months.
On Jul. 25, Tigress Financial analyst Ivan Feinseth maintained a “Buy” rating with a price target of $336. Ivan noted that Snap-on is well-positioned to benefit from increasing vehicle complexity and a combination of the aging global vehicle fleet, the ongoing development and introduction of new products, and expansion into new industry verticals.
SNA stock’s mean price target of $297.50 represents a premium of 5.4% from current price 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.
