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With a market cap of $17.6 billion, Snap-on Incorporated (SNA) is a global leader in manufacturing and marketing professional tools, equipment, diagnostics, and repair solutions. It serves industries such as aviation, aerospace, agriculture, construction, government, mining, and power generation with a wide range of products, including hand and power tools, tool storage, diagnostic software, and business management systems.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and Snap-on fits this criterion perfectly. In addition to its product offerings, Snap-on provides financing programs to facilitate sales and support its franchise business. Based in Kenosha, Wisconsin, Snap-on continues to innovate and deliver high-quality solutions for professional users worldwide.
SNA saw a 10.3% decline from its 52-week high of $373.89. Shares of the tool and diagnostic equipment maker have dipped 2.4% over the past three months, performing better than the broader S&P 500 Index’s ($SPX) 4.7% decline over the same time frame.
In the longer term, SNA stock is down 1.2% YTD, a less pronounced decline than SPX’s 3.2% dip. Moreover, shares of Snap-on have gained 12.9% over the past 52 weeks, outperforming the SPX's 8.5% return over the same time frame.
SNA has been trading above its 50-day and 200-day moving averages since September 2024. But, the stock has fallen below its 50-day moving average since mid-December 2024.
Despite reporting a better-than-expected Q4 2024 EPS of $4.82 and adjusted revenue of $1.2 billion, Snap-on’s shares fell 4.6% on Feb. 6. The Tools Group, Snap-on’s largest revenue-generating segment, saw a 1.4% decline in quarterly net sales, driven by lower U.S. activity amid a recovering inflationary environment. Investors were also concerned about the company's shift toward lower-priced products in the Tools network.
However, SNA has outperformed its rival, Stanley Black & Decker, Inc. (SWK), which has declined 19.9% over the past 52 weeks and 3.2% YTD.
Although Snap-on has outperformed, analysts remain cautious about its prospects. The stock has a consensus rating of “Hold” from the 11 analysts covering it, and as of writing, it is trading below the mean price target of $348.17.
