Snap-on (SNA) Hits New Lifetime High Today

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.

Trade-Ideas LLC identified Snap-on ( SNA) 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 $31.5 million.
  • SNA has traded 3,443 shares today.
  • SNA is trading at a new lifetime high.

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More details on SNA:

Snap-on Incorporated manufactures and markets tools, equipment, diagnostics, and repair information and systems solutions for professional users worldwide. The stock currently has a dividend yield of 1.4%. SNA has a PE ratio of 21. Currently there are 3 analysts that rate Snap-on a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Snap-on has been 287,700 shares per day over the past 30 days. Snap-on has a market cap of $9.1 billion and is part of the industrial goods sector and industrial industry. The stock has a beta of 1.12 and a short float of 1.6% with 4.71 days to cover. Shares are up 15.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Snap-on as a buy. 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 11.3%. Since the same quarter one year prior, revenues slightly increased by 5.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.43, 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 1.57, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 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 $7.15 versus $5.93 in the prior year. This year, the market expects an improvement in earnings ($8.01 versus $7.15).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Machinery industry average. The net income increased by 15.2% when compared to the same quarter one year prior, going from $95.90 million to $110.50 million.
  • The gross profit margin for SNAP-ON INC is rather high; currently it is at 55.07%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 12.48% is above that of the industry average.

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