Back to top

Image: Shutterstock

Snap-on (SNA) is in Oversold Territory: What's Next?

Read MoreHide Full Article

Snap-on Incorporated (SNA - Free Report) has been on a bit of a cold streak lately, but there might be light at the end of the tunnel for this overlooked stock. And for technical investors there is some hope when looking at SNA given that, according to its RSI reading of 23.15, it is now in oversold territory.

What is RSI?

RSI stands for ‘Relative Strength Index’ and it is a popular indicator used by technically focused investors. It compares the average of gains in days that closed up to the average of losses in days that closed down; readings above 70 suggest an asset is overbought, while an RSI below 30 suggests undervalued conditions are present.

Other Factors

Yet, SNA’s low RSI value isn’t the only reason to have some optimism over a coming turnaround, as there has been plenty of positive earnings estimate revision activity as of late. This is especially true when investors take a deep dive into some of these estimate revision stats and recent changes to Snap-on’s earnings consensus.

Over the past two months, investors have seen 7 earnings estimate revision move higher, compared with none lower, at least when looking at the key current year time frame. And the consensus estimate for SNA has also been on an upward trend over the past 60 days, as estimates have risen by 6.8% over the last two months.

If this wasn’t enough, Snap-on also has a Zacks Rank #1 (Strong Buy) which puts it into rare company among its peers. So, given all of these factors, investors may want to consider getting in on this stock now (or holding on), as there are some favorable trends that could bubble up for this stock before long. You can see the complete list of today’s Zacks #1 Rank stocks here.

Time to Invest in Legal Marijuana

If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.

After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%

You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.

Today, Download Marijuana Moneymakers FREE >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Snap-On Incorporated (SNA) - free report >>

Published in