Snap (SNAP) closed the most recent trading day at $8.33, moving +1.34% from the previous trading session. The stock's performance was ahead of the S&P 500's daily loss of 0.5%. Elsewhere, the Dow lost 0.38%, while the tech-heavy Nasdaq lost 0.5%.
The stock of company behind Snapchat has risen by 17.6% in the past month, leading the Computer and Technology sector's gain of 8.21% and the S&P 500's gain of 2.74%.
The upcoming earnings release of Snap will be of great interest to investors. The company's upcoming EPS is projected at $0.06, signifying a 25.00% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.49 billion, indicating a 8.82% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $0.25 per share and a revenue of $5.88 billion, demonstrating changes of -13.79% and +9.68%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Snap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 3.32% lower. Snap is currently sporting a Zacks Rank of #3 (Hold).
Looking at its valuation, Snap is holding a Forward P/E ratio of 32.88. For comparison, its industry has an average Forward P/E of 31.31, which means Snap is trading at a premium to the group.
We can also see that SNAP currently has a PEG ratio of 0.9. 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. The average PEG ratio for the Internet - Software industry stood at 2.28 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 30% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Snap Inc. (SNAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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