Kenosha, Wisconsin-based Snap-on Incorporated (SNA) manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users. With a market cap of $17.6 billion, the company offers a range of products, including hand and power tools, diagnostics and shop equipment, tool storage solutions, diagnostic software, and other services for the automotive service industry.
Companies worth $10 billion or more are generally described as “large-cap stocks,” and SNA perfectly fits that description, with its market cap exceeding this mark, underscoring its size, influence, and dominance within the tools & accessories industry. Snap-on’s strength lies in its differentiated value proposition, built through diversification, scale, and high brand equity across professional and industrial segments. Its direct sales model and robust distribution network create a competitive advantage, while a global manufacturing footprint and operational efficiencies drive success. Strategic positioning and a culture of innovation also position Snap-on for growth in emerging markets and digital technologies.
Despite its notable strength, SNA shares have slipped 9.7% from their 52-week high of $373.90, achieved on Nov. 27, 2024. Over the past three months, SNA stock has gained 10.4%, outperforming the Dow Jones Industrials Average’s ($DOWI) 9.9% gains during the same time frame.
In the longer term, shares of SNA dipped marginally on a YTD basis, underperforming DOWI’s YTD gains of 9%. However, the stock climbed 19.2% over the past 52 weeks, outperforming DOWI’s 10.3% returns over the last year.
To confirm the bullish trend, SNA has been trading above its 50-day moving average since early July, with some fluctuations. The stock is trading above its 200-day moving average since mid-September.
Snap-on’s outperformance is driven by steady demand from auto parts companies and repair shops, fueled by increased U.S. Road travel and consumers holding onto older vehicles. This trend has boosted the company’s core business in the resilient automotive aftermarket.
On Jul. 17, SNA shares closed up by 7.9% after reporting its Q2 results. Its EPS of $4.72 exceeded Wall Street expectations of $4.61. The company’s revenue was $1.18 billion, exceeding Wall Street forecasts of $1.15 billion.