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The trajectory is up for Snap-on Inc. (SNA - Free Report) . Earnings and sales have risen year over year each of the last four quarters. Despite shares trading at 2-year highs, this Zacks #1 Rank (strong buy) still has value, with a forward P/E of 14.5.

Snap-on manufactures tools, equipment, diagnostics, and repair information and systems for vehicle dealerships and repair centers. Founded in 1920 in Wisconsin, the company now has a presence in 150 countries and estimates that it reaches 40% of the world's vehicle technicians.

Snap-on Surprised By 6% in the Fourth Quarter

On Feb 3, Snap-on reported its fourth quarter results and beat the Zacks Consensus by 5 cents. It was the fourth consecutive earnings surprise.

Earnings per share were 93 cents compared to the consensus of 88 cents. The company made just 63 cents a year ago.

Sales rose 12.7% to $696.9 million in the fourth quarter and 10.9% to $2.6 billion for 2010.

All segments saw revenue growth but Repair Systems & Information Group saw sales rise the most, 14.9%, to $231.8 million from 2009 due to stronger activity with repair shop owners and managers.

Looking for Growth in the Emerging Markets in 2011

The company has been expanding in the emerging markets and sees growth in that area in 2011. It will also be expanding in the vehicle repair garage.

Analysts liked what they heard as 2011 and 2012 estimates have both jumped.

The 2011 Zacks Consensus Estimate has risen 19 cents to $4.05 per share. This is earnings growth of 29.5%.

For 2012, earnings are expected to rise another 15.5% to $4.68 per share.

The price-to-consensus chart shows the estimates moving in the right direction with the share price.

SNA Has Solid Fundamentals

In addition to a P/E under 15, Snap-on also has a price-to-book of 2.4 which puts it within the value parameters of under 3.0.

The company has also paid a dividend every quarter since 1939 which currently yields 2.2%.

Check out the 2-year chart which shows a nice move to the upside.

Tracey Ryniec is the Value Stock Strategist for She is also the Editor in charge of the market-beating Zacks Value Trader service. You can follow her at

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