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Snap-on Incorporated: Snap It Up Quick, New Highs Will Come Soon
Written by Thomas Hughes. Published 10/19/2025.
Key Points
- Snap-on Incorporated is well-positioned to grow and sustain solid margins in the coming years.
- The stock trades at a premium to historical norms but still offers value, given its capital returns and growth outlook.
- Technical and analyst trends suggest this stock could hit record levels, potentially before the year's end.
Snap-on Incorporated (NYSE: SNA) stock trades near the high end of its historical range in 2025, but it can still move higher — its premium is well deserved. The high-quality industrial business is supported by global demand, generates ample cash flow, and returns capital through dividends, distribution growth, a market-beating yield, and share-reducing buybacks.
At roughly 17x this year's outlook, the stock may appear expensive relative to its historical norms. However, that valuation is below the S&P 500 average; the yield is more than double the index average; the payout is reliable; and the earnings growth outlook looks close to robust.
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If analysts are right — and they have often been conservative — the stock trades at roughly 10x its 2030 consensus forecast, implying deep value and potential for a 50%–70% price increase within a few years.
Snap-On Outperforms in Q3, Provides Optimistic Outlook
Snap-on reported a solid Q3: organic revenue grew about 3%, overall revenue rose 3.5% — slightly ahead of expectations — helped by an emerging FX tailwind and strong margins. The top-line gain was driven by strength in the Repair segment, which grew 8.9%. The core Snap-on Tools Group grew organically by 1%, while the Commercial & Industrial and Financial Services segments saw slight declines.
The company says it is seeing demand both inside and outside garage settings.
Margin performance was also strong. Snap-on widened gross and operating margins, aided by favorable foreign-exchange translation, which pushed operating income and earnings above forecasts. The core operating margin (excluding Financial Services) improved by 140 basis points, while the net margin widened by 90 basis points.
Adjusted earnings beat by $0.05 per share, consistent with the top-line strength and sufficient to sustain and potentially improve the company's capital-return outlook.
Snap-on did not provide specific guidance in the report but offered optimistic commentary. Management says it is well-positioned to sustain growth, sees numerous opportunities to capitalize on, and is accelerating its capital expenditures (capex) in Q4 as a result.
The company aims to expand its customer base, move into new verticals, and deepen penetration of critical industries.
Snap-on's Capital Return Drives This Uptrend
Snap-on's growth trajectory is important to the stock outlook, but ultimately the market responds to how that growth translates into cash flow and capital returns.
This is a high-yielding stock, paying an annualized distribution of 2.6% as of mid-October.
The payout appears sustainable: it is less than 50% of forecasted annual earnings, and the balance sheet remains strong.
Investors can also reasonably expect dividend increases in coming years. Snap-on has raised its dividend for 16 consecutive years and is on track to be included in the Dividend Aristocrats index by the middle of the next decade.
In Q3, share buybacks reduced the share count by nearly 1% year-over-year; through the first nine months of the fiscal year, the cumulative reduction was about 0.75%.
Snap-on Advances, in Alignment With the Prevailing Trend
Over the past year the stock consolidated within a range and struggled to gain traction. However, this consolidation occurred within a larger bull market, setting the stock up to advance in 2026. After the earnings release, the stock rose roughly 3%, confirming support at current levels and increasing the likelihood of higher prices by year-end.
Critical support is near $330 and is reinforced by the 150-day and 30-day EMAs, making a break less likely. Key resistance sits near $360 and could be reached by late November. In the longer term, analysts' trends suggest the stock could exceed $400 by mid-2026.
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