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Snap-on Incorporated (SNA) Traded Lower Due to Mixed Earnings Results

Ariel Investments, an investment management company, released its “Ariel Focus Fund” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. While uncertainty is high and volatility is expected to remain elevated, the firm considers these risks as short-term disturbances within the scope of its long-term investment strategy. In the second quarter, the fund returned -3.37% and underperformed the -2.17% return for the Russell 1000 Value Index and the +4.28% return for the S&P 500 Index. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Ariel Focus Fund highlighted stocks like Snap-on Incorporated (NYSE:SNA), in the second quarter 2024 investor letter. Snap-on Incorporated (NYSE:SNA) manufactures and distributes tools, equipment, diagnostics, repair information, and systems solutions for professional users. The one-month return of Snap-on Incorporated (NYSE:SNA) was -2.39%, and its shares gained 4.20% of their value over the last 52 weeks. On August 28, 2024, Snap-on Incorporated (NYSE:SNA) stock closed at $280.18 per share with a market capitalization of $14.761 billion.

Ariel Focus Fund stated the following regarding Snap-on Incorporated (NYSE:SNA) in its Q2 2024 investor letter:

“Lastly, tool innovator, Snap-on Incorporated (NYSE:SNA), declined on mixed earnings results as softer than expected organic growth in the tools segment was offset by solid margins. Amidst the challenging macro backdrop, mechanics have begun favoring lower-priced tool sets and franchisees are destocking inventory levels. In response, SNA is redirecting product design, capacity and marketing efforts to match mechanic preferences. In our view, the automotive repair industry sports a favorable runway due to aging vehicles and the increased technological complexity associated with repair. We believe SNA’s value proposition to its end markets remains differentiated, as it continues to respond to real-time feedback and invest in new products to service unique needs of original equipment manufacturers.”

A workshop full of tools and supplies, showcasing the range of products available.

Snap-on Incorporated (NYSE:SNA) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held Snap-on Incorporated (NYSE:SNA) at the end of the second quarter which was 28 in the previous quarter. While we acknowledge the potential of Snap-on Incorporated (NYSE:SNA) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed Snap-on Incorporated (NYSE:SNA) and shared the list of best home improvement stocks to buy. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.

READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.

Disclosure: None. This article is originally published at Insider Monkey.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

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China’s terrifying internet “Master Key”… and the one microcap that could stop them

In August 2024, news outlets around the world revealed one of the most shocking data breaches in recent history.

Approximately 2.9 billion records, including names, email addresses, phone numbers, mailing addresses, financial data and, distressingly, Social Security numbers, were stolen when Coral Springs, Florida, firm National Public Data (NPD) suffered a massive cyberattack. The company confirmed that the breach, which happened in December 2023, resulted in the potential leaks of data in the summer of 2024.

Nearly every day in the news, we hear about yet another damaging data breach or ransomware attack that puts valuable data — including yours — into the hands of hackers. And the number of attacks is soaring — up 30% year over year according to the latest numbers.

As bad as this is, it’s a day at the beach compared to what’s coming.

That’s because hostile nations across the globe — including Iran, North Korea, Russia and Communist China are going all-out to develop a breakthrough technology that will unlock what I call the “Master Key” to the Internet.

If they succeed in harnessing this groundbreaking “Master Key” technology, the consequences could be catastrophic.

Click to continue reading…