Snap-on Stock Forecast – Is SNA a Buy After Its Q1 Earnings Miss?

SNA Stock Analysis – Why We Still Love Snap-on

Snap-on (NYSE: SNA) may have posted a disappointing Q1, but our long-term conviction in this stock hasn’t changed. While short-term results have pushed the share price lower, we see an opportunity rather than a red flag. With a premium brand, a durable business model, and industry dominance in professional-grade tools, Snap-on remains a high-quality compounder hiding in plain sight.

Snap-on Q1 2025 Earnings – What Went Wrong?

Snap-on reported Q1 2025 revenue of $1.1 billion, a 3.5% year-over-year decline, and missed analyst expectations by 5%. Earnings per share came in at $4.51, down 8.1% YoY, also falling short of consensus by 6.2%.

The sharpest declines came from its commercial & industrial group and tools group, both of which reported drops in organic sales and operating earnings. The market reacted swiftly: SNA fell 8% after the report and is now down 7.3% over the past 3 months, lagging the Nasdaq Composite’s 9.9% gain.

Technically, the stock has traded below its 50-day and 200-day moving averages since December and April, respectively — a signal of continued short-term weakness.

Snap-on Stock Forecast – Long-Term Upside in a Tough Market

Despite the recent dip, Snap-on remains a long-term winner in our view.

• Moat Strength: The company holds over 4,000 patents and invests heavily in R&D, helping it defend premium pricing and maintain market share.

• Brand Power: Its direct-to-user sales model builds strong customer loyalty across mission-critical sectors like aerospace, military, natural resources, and infrastructure.

• Diversification: Snap-on is more than tools — it's also software, diagnostics, and connected equipment. This layered approach adds recurring revenue potential and improves margin durability.

• Analyst Sentiment: The stock holds a “Moderate Buy” rating from Wall Street, with a consensus price target of $345, representing ~13% upside from current levels.

Snap-on isn’t just a tools company — it’s a category leader with operational resilience and long-term earnings power.

Is Snap-on Stock Undervalued or Just Out of Favor?

From a valuation standpoint, SNA looks compelling:

• 18.2% below its 52-week high of $373.90 (set in Nov 2024)

• Trades at a discount compared to historical forward P/E averages

• Outperformed peer Stanley Black & Decker (SWK), which is down 23.2% YoY vs Snap-on’s 13.8% gain

While near-term weakness can’t be ignored, we view it as more of a reset than a fundamental shift. The business remains profitable, with free cash flow and balance sheet strength that support dividends and potential buybacks.

Buy or Avoid? Our Final Verdict on SNA Stock

We love Snap-on (SNA) — and we’re comfortable saying so even after a rough quarter. In a market environment full of speculative plays, Snap-on offers real earnings, deep industrial ties, and long-term pricing power.

If you’re a long-term investor looking for quality at a discount, SNA is a buy.