Snap (SNAP) ended the recent trading session at $7.50, demonstrating a +1.76% change from the preceding day's closing price. This change outpaced the S&P 500's 1.16% loss on the day. On the other hand, the Dow registered a loss of 0.47%, and the technology-centric Nasdaq decreased by 1.81%.
Shares of the company behind Snapchat witnessed a loss of 10.67% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1%, and the S&P 500's gain of 1.03%.
Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. The company is expected to report EPS of $0.15, down 6.25% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $1.7 billion, indicating a 9.12% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.32 per share and a revenue of $5.91 billion, representing changes of +10.34% and +10.31%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Snap. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
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 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 past month, the Zacks Consensus EPS estimate has shifted 8.03% upward. At present, Snap boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Snap is presently being traded at a Forward P/E ratio of 23.03. This expresses a discount compared to the average Forward P/E of 28.79 of its industry.
We can additionally observe that SNAP currently boasts a PEG ratio of 1.06. 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. The average PEG ratio for the Internet - Software industry stood at 1.88 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 55, positioning it in the top 23% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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