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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 $18 billion, Snap-on operates through Commercial & Industrial Group, Snap-on Tools Group, Repair Systems & Information Group, and Financial Services segments.
Companies worth $10 billion or more are generally described as "large-cap stocks," Snap-on fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the tools and equipment manufacturing space.
The stock recently touched its all-time high of $373.89 on Nov. 27 and is currently trading 8.1% below that peak. Furthermore, Snap-on has soared 21.4% over the past three months, significantly outperforming the Industrial Select Sector SPDR Fund’s (XLI) marginal gains during the same time frame.
Driven by the recent surge in prices, Snap-on has outperformed the industrial sector over the longer term as well. SNA has surged nearly 19% on a YTD basis and over 20.9% in the past 52 weeks, compared to XLI’s 17.4% gains in 2024 and 20.1% returns over the past year.
To confirm the recent upturn, SNA has traded mostly above its 50-day moving average since mid-July with some fluctuations and consistently above its 200-day moving average since mid-September.
Snap-on stock prices jumped nearly 10% after the release of its Q3 results on Oct. 17 as the company experienced notable margin expansion and its adjusted EPS of $4.70 surpassed analysts’ estimates by 2.6%. However, its net sales dropped approximately 1.1% compared to the year-ago quarter to $1.1 billion, due to a $19.2 million decrease in organic revenues which was partially offset by acquisition-related sales.
Nonetheless, despite the challenging market conditions, the company demonstrated impressive operational efficiency and resilience, delivering a 3.3% growth in net earnings to shareholders, reaching $251.1 million.
Snap-on has also outperformed its peer Stanley Black & Decker, Inc.’s (SWK) 16.4% gains in 2024 and 14.7% returns over the past year.
Among the 11 analysts covering the SNA stock, the consensus rating is a “Hold.” Its mean price target of $344.67 indicates a marginal upside potential from current price levels.
