Snap (SNAP) closed the most recent trading day at $8.13, moving -4.58% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.38% for the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 0.67%.
Prior to today's trading, shares of the company behind Snapchat had gained 18.01% outpaced the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 4.06%.
The investment community will be closely monitoring the performance of Snap in its forthcoming earnings report. The company is expected to report EPS of $0.06, down 25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.49 billion, up 8.82% from the prior-year quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.26 per share and revenue of $5.88 billion, indicating changes of -10.34% and +9.68%, respectively, compared to the previous year.
Any recent changes to analyst estimates for Snap should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.72% higher. Currently, Snap is carrying a Zacks Rank of #4 (Sell).
From a valuation perspective, Snap is currently exchanging hands at a Forward P/E ratio of 33.25. This valuation marks a premium compared to its industry average Forward P/E of 30.
We can additionally observe that SNAP currently boasts a PEG ratio of 0.91. 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 Internet - Software was holding an average PEG ratio of 2.35 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 81, positioning it in the top 33% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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