Valued at a market cap of $17.5 billion, Snap-on Incorporated (SNA) is a leading manufacturer of premium tools, equipment, diagnostics, and repair solutions for professional technicians across automotive, aviation, industrial, and heavy-duty sectors. The Kenosha, Wisconsin-based company is known for its high-end hand tools, power tools, and advanced diagnostic systems.
This premium tools and equipment manufacturer has lagged behind the broader market over the past 52 weeks. Shares of SNA have declined 9% over this time frame, while the broader S&P 500 Index ($SPX) has gained 11%. Moreover, on a YTD basis, the stock is down 1.9%, compared to SPX’s 14% return.
Narrowing the focus, SNA has also underperformed the Industrial Select Sector SPDR Fund’s (XLI) 5.2% uptick over the past 52 weeks and 13.8% YTD rise.
Shares of SNA rose 3.5% on Oct. 16, after its better-than-expected Q3 earnings release. Strong growth in its repair systems & information group’s revenue drove a 3.8% year-over-year increase in total net sales to $1.2 billion, coming in 3.5% above consensus estimates. Net earnings also strengthened, rising 5.7% from the prior-year quarter to $265.4 million.
For the current fiscal year, ending in December, analysts expect SNA’s EPS to decline 2% year over year to $18.80. The company’s earnings surprise history is mixed. It topped the consensus estimates in three of the last four quarters, while missing on another occasion.
Among the 10 analysts covering the stock, the consensus rating is a "Moderate Buy,” which is based on three “Strong Buy,” one "Moderate Buy,” five "Hold,” and one "Moderate Sell” rating.
The configuration has remained fairly stable over the past three months.
On Oct. 21, Tigress Financial maintained a "Buy" rating on SNA and raised its price target to $405, the Street-high price target, indicating an ambitious 21.6% potential upside from the current levels.
The mean price target of $365.29 represents a 9.7% premium from SNA’s current price levels.
On the date of publication, Neharika Jain 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.
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