Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Snap-on as such a stock due to the following factors:
- SNA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $39.4 million.
- SNA has traded 396,062 shares today.
- SNA is trading at a new lifetime high.
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More details on SNA:
Snap-on Incorporated provides tools, equipment, diagnostics, and repair information and systems solutions for professional users. It operates through four segments: Commercial and Industrial Group, Snap-on Tools Group, Repair Systems and Information Group, and Financial Services. The stock currently has a dividend yield of 1.5%. SNA has a PE ratio of 18.0. Currently there are 3 analysts that rate Snap-on a buy, no analysts rate it a sell, and 3 rate it a hold.
The average volume for Snap-on has been 260,900 shares per day over the past 30 days. Snap-on has a market cap of $5.8 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.34 and a short float of 1.6% with 2.37 days to cover. Shares are up 27.1% year to date as of the close of trading on Friday.
rates Snap-on as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 17.8%. Since the same quarter one year prior, revenues slightly increased by 4.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SNA has a quick ratio of 1.56, which demonstrates the ability of the company to cover short-term liquidity needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 37.72% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SNA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- SNAP-ON INC has improved earnings per share by 15.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, SNAP-ON INC increased its bottom line by earning $5.20 versus $4.72 in the prior year. This year, the market expects an improvement in earnings ($5.86 versus $5.20).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Machinery industry average, but is less than that of the S&P 500. The net income increased by 15.7% when compared to the same quarter one year prior, going from $76.40 million to $88.40 million.
- You can view the full Snap-on Ratings Report.