Snap-on (NYSE: SNA) certainly gave its investors a reason to sell when it released its Q1 earnings report in May 2025. However, despite the weaknesses, the report also highlights why this is a must-own stock. Its diversified business model produces robust cash flows sufficient to sustain operations through good times and bad while returning capital to shareholders.
Capital returns are significant, including a higher-than-average dividend yield, and drive value for investors, as seen in stock price action. The stock price tends to trend higher over time, and price pullbacks like the one in Q2 2025 quickly turn into rebounds that produce triple-digit gains.
