This average age will continue to climb higher for the foreseeable future. The average age of light vehicles in the U.S. Snap-on may benefit from the factors described by Nicholas, which are long-term tailwinds for the automotive sector. Nicholas noted that the complexity of the vehicles has also increased with changes in internal combustion, the rise of electric vehicles, and the expansion of vehicle autonomy. Nicholas Pinchuk, the CEO, remarked that the automotive repair market remains favorable since the average age of vehicles continues to increase.

The company registered good organic sales growth of 8%. The strong dollar was a headwind for the company, reducing sales by $37.7 million, a 370 basis points hit. In Q4 2022, the company reported a 4% increase in revenue. Given the stock's fading momentum, these calls have a low probability of being assigned. Existing shareholders can generate over a 1% yield for four weeks if they sell covered calls expiring March 17. The company is fully valued, and a price below $220, a 10% drop, may be the going price to venture into the stock. The dividend yield could be better, given that the U.S. The company has consistent gross and operating margins indicating the stability of the company. The company may be in the midst of a multi-year growth period. Snap-on's ( NYSE: SNA) customer base looks strong.

Snap on stock price