![]() We aim to bring you long-term focused analysis driven by fundamental data. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. This article by Simply Wall St is general in nature. Alternatively, email editorial-team (at). Have feedback on this article? Concerned about the content? Get in touch with us directly. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges. So you may wish to see this free collection of growth stocks. ![]() Of course Snap-on may not be the best stock to buy. For example, we've discovered 2 warning signs for Snap-on (1 is significant!) that you should be aware of before investing here. But to understand Snap-on better, we need to consider many other factors. It's always interesting to track share price performance over the longer term. ![]() Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. Since the one-year TSR is better than the five-year TSR (the latter coming in at 13% per year), it would seem that the stock's performance has improved in recent times. We're pleased to report that Snap-on shareholders have received a total shareholder return of 23% over one year. You can see how EPS has changed over time in the image below (click on the chart to see the exact values). It's not unusual to see the market 're-rate' a stock, after a few years of growth. This suggests that, as the business progressed over the last few years, it gained the confidence of market participants. This EPS growth is lower than the 21% average annual increase in the share price. One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price.ĭuring three years of share price growth, Snap-on achieved compound earnings per share growth of 11% per year. There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. So let's assess the underlying fundamentals over the last 3 years and see if they've moved in lock-step with shareholder returns. On the other hand, the returns haven't been quite so good recently, with shareholders up just 23%, including dividends. Just take a look at Snap-on Incorporated ( NYSE:SNA), which is up 76%, over three years, soundly beating the market return of 32% (not including dividends). But many of us dare to dream of bigger returns, and build a portfolio ourselves. One simple way to benefit from the stock market is to buy an index fund.
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