At the Focal Point, Checking in on Snap-on Incorporated (NYSE:SNA)

Snap-on Incorporated (NYSE:SNA) are being monitored closely by investors today as the name is currently priced at $159.25, a -0.64% difference from where it most recently opened.  So where is the stock headed from here?  We will take a quick look here at how the stock has performed recently.

After a recent check, shares of Snap-on Incorporated (NYSE:SNA) have been seen trading -14.14% off of the 50-day high and 3.08% away from the 50-day low. In terms of the stock price in relation to its moving averages, company shares are -8.83% away from the 20-day moving average and -8.50% off of the 50-day average. If we take a wider approach, shares have been trading -0.62% away from the 200-day moving average.

Over the last year, Snap-on Incorporated (NYSE:SNA)’s stock has performed -6.26%. For the last six months, the stock has performed 4.45%. From the start of the calendar year, shares have been -8.63%. Zooming in closer, company stock has been 1.56% for the quarter, -13.34% over the past month, and -3.07% over the past week.

Beta is used to measure a stock’s price volatility relative to the market. A stock with a beta of “0” indicates that its price is not correlated with the market. A positive beta indicates that the stock follows the market. A negative beta means that the stock inversely follows the market, decreasing in value when the market goes up. Snap-on Incorporated (NYSE:SNA) current has a Beta score of 1.07.

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  Snap-on Incorporated’s EPS is 9.51.  Their EPS should be compared to other companies in the Industrial Goods sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  Snap-on Incorporated’s  P/E ratio is 16.75. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  Snap-on Incorporated’s  PEG is 1.12.

RETURNS AND RECOMMENDATION

Shareholders can expect a return on equity of 20.60%.  Calculated by dividing Snap-on Incorporated’s annual earnings by its total assets, investors will note a return on assets of 11.50%.  Finally, Snap-on Incorporated’s return on investment stands at 16.80% when you divide the shareholder’s return by the cost.  The consensus analysts recommendation at this point stands at 1.70 for Snap-on Incorporated (NYSE:SNA).  This is based on a 1-5 scale where 1 indicates a Strong Buy and 5 a Strong Sell.