Is Snap-on Stock Outperforming the S&P 500?
/Snap-on%2C%20Inc_tool%20truck-by%20John%20Hanson%20Pye%20via%20Shutterstock.jpg)
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.
On the date of publication, Sohini Mondal 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.