Snap-on's Operational Agility, RCI Execution and Innovation Aid Growth

Snap-on Incorporated’s SNA growth strategy centers on three key priorities: strengthening its franchise network, deepening relationships with repair shop owners and managers, and expanding its presence in critical industries across emerging markets. The company remains committed to disciplined strategic principles and processes, including Rapid Continuous Improvement (RCI) to drive efficiency and create long-term value.

The RCI process is designed to enhance organizational effectiveness and minimize costs, along with helping Snap-on boost sales and margins and generate savings. Savings from the RCI initiative reflect gains from the continuous productivity and process-improvement plans.  Snap-on’s business trends have been robust. 

The company’s new models have entered the market equipped with advanced drivetrains, motor configurations and high-tech electrical systems that manage a neural network of sensors, enabling driver-assisted vehicle autonomy. Management remains on track with its value-creation plans, with a continued focus on strengthening customer connections and driving innovation.

Snap-on is poised well, given its innovative hardware, particularly with the proprietary comprehensive database. Its specialty torque business within the Commercial & Industrial Group is progressing well. The company has an array of new products, including its heavy-duty cordless torque multiplier, known as the CTM 800. This tool has been expanding in torque.

Management expects SNA’s markets and operations to have considerable resilience against the uncertainties of the operating landscape. It anticipates continued progress by leveraging capabilities in the automotive repair arena, as well as expanding its customer base in automotive repair and across geographies, including critical industries. Going ahead, SNA anticipates progress along its defined runways for growth. Such strengths are likely to bolster sales and profits.

SNA’s Price Performance, Valuation and Estimates

Shares of Snap-on have gained 13.5% in the past six months compared with the industry’s growth of 13.2%.

From a valuation standpoint, SNA trades at a forward price-to-earnings ratio of 17.49X compared with the industry’s average of 17.52X.

The Zacks Consensus Estimate for SNA’s 2025 earnings indicates a year-over-year drop of 2% but the same for 2026 implies a rise of 5.7%. The company’s EPS estimate for 2025 and 2026 has been stable in the past 30 days.

Snap-on stock currently carries a Zacks Rank #3 (Hold).

Key Picks in the Consumer Discretionary Space

Crocs, Inc. CROX, which is a leading footwear company, currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. 

CROX delivered a trailing four-quarter earnings surprise of 14.3%, on average. The Zacks Consensus Estimate for Crocs’ current financial-year EPS indicates a decline of 7.9% from the year-ago number. 

Guess?, Inc. GES, which is a designer and marketer of casual apparel and accessories, currently carries a Zacks Rank #2 (Buy). 

GES delivered a trailing four-quarter earnings surprise of 45%, on average. The Zacks Consensus Estimate for GES’ current financial-year sales indicates growth of 8% from the year-ago number. 

Kontoor Brands, Inc. KTB, which is an apparel company, currently carries a Zacks Rank of 2.

The Zacks Consensus Estimate for KTB’s current financial-year EPS is expected to rise 12.5% from the corresponding year-ago reported figure. KTB delivered a trailing four-quarter earnings surprise of 14%, on average.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research