4-Star Stocks Poised to Pop: Snap-on
By
Brian D. Pacampara
November 10, 2009
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Based on the aggregated intelligence of 140,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, small tool specialist Snap-on (NYSE: SNA) has earned a respected four-star ranking.
With that in mind, let's take a closer look at Snap-on's business and see what CAPS investors are saying about the stock right now.
Snap-on facts
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Headquarters (Founded)
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Kenosha, Wis. (1920)
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Market Cap
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$2.25 billion
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Industry
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Machinery
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Trailing-12-Month Revenue
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$2.48 billion
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Management
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CEO Nicholas Pinchuk (since 2007) CFO Martin Ellen (since 2002)
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Return on Equity (Average, Past 3 Years)
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15%
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Cash / Debt
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$709 million / $1.07 billion
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Dividend Yield
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3.2%
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Competitors
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Black & Decker (NYSE: BDK) Danaher (NYSE: DHR)
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CAPS Members Bullish on SNA Also Bullish on
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General Electric (NYSE: GE) Johnson & Johnson (NYSE: JNJ)
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CAPS Members Bearish on SNA Also Bearish on
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Capital One Financial (NYSE: COF) Freddie Mac (NYSE: FRE)
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Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 91.3% of the 196 members who have rated Snap-on believe the stock will outperform the S&P 500 going forward. These bulls include mitleg and tekennedy.
Earlier this year, mitleg tapped the stock as a handy tool for some solid income: "They pay a nice ... dividend. They have moderate debt, a low [PEG ratio], and generally good numbers."
In a pitch from last month, tekennedy expands on Snap-on as an emerging star. Here's an excerpt:
In the long term I believe emerging markets will catapult growth. The company has begun to move manufacturing to these areas helping establish a presence. As the average wealth grows within these countries the number of car sales (~70% of revenue is car related) should grow rapidly; due to the company's franchise model I believe the company is best positioned to grow within these areas. ... [S]hares have been beat down due to franchisee troubles and general automotive turmoil.
What do you think about Snap-on, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. The CAPS community is waiting to hear your opinions. CAPS is 100% free, so get started!
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