In the latest close session, Snap (SNAP) was down 2.71% at $10.07. This change lagged the S&P 500's daily gain of 0.78%. Meanwhile, the Dow experienced a rise of 1.14%, and the technology-dominated Nasdaq saw an increase of 0.61%.
The company behind Snapchat's shares have seen an increase of 24.4% over the last month, surpassing the Computer and Technology sector's gain of 8.76% and the S&P 500's gain of 5.88%.
The upcoming earnings release of Snap will be of great interest to investors. The company's earnings report is expected on August 5, 2025. On that day, Snap is projected to report earnings of $0 per share, which would represent a year-over-year decline of 100%. Simultaneously, our latest consensus estimate expects the revenue to be $1.34 billion, showing a 7.96% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates project earnings of $0.25 per share and a revenue of $5.84 billion, demonstrating changes of -13.79% and +8.89%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Snap. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Snap possesses a Zacks Rank of #1 (Strong Buy).
Investors should also note Snap's current valuation metrics, including its Forward P/E ratio of 42.24. This signifies a premium in comparison to the average Forward P/E of 29.16 for its industry.
It is also worth noting that SNAP currently has a PEG ratio of 1.2. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SNAP's industry had an average PEG ratio of 2.2 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 68, which puts it in the top 28% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Snap Inc. (SNAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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