Snap (SNAP) closed the most recent trading day at $7.87, moving +1.29% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.58%. Elsewhere, the Dow gained 0.31%, while the tech-heavy Nasdaq added 0.89%.
The company behind Snapchat's shares have seen a decrease of 5.47% over the last month, not keeping up with the Computer and Technology sector's loss of 0.5% and the S&P 500's gain of 0.16%.
The upcoming earnings release of Snap will be of great interest to investors. The company's earnings report is expected on November 5, 2025. The company's earnings per share (EPS) are projected to be $0.06, reflecting a 25% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.49 billion, showing a 8.83% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.26 per share and a revenue of $5.89 billion, indicating changes of -10.34% and +9.88%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Snap. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.72% higher. As of now, Snap holds a Zacks Rank of #4 (Sell).
In terms of valuation, Snap is currently trading at a Forward P/E ratio of 30.32. For comparison, its industry has an average Forward P/E of 29.4, which means Snap is trading at a premium to the group.
Meanwhile, SNAP's PEG ratio is currently 0.83. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.11.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 26% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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