Snap-on Incorporated SNA

Snap-on is set to report its Q3 earnings soon, with analysts expecting single-digit year-over-year EPS growth.

Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. Unfortunately, this role also comes with a demand profile tethered to the ebbs and flows of the broader economy. The market seems to be debating where we are in the cycle as industrials stocks were flat over the past six months. At the same time, the S&P 500 rose by 16.9%.

Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments. Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.