In the latest close session, Snap (SNAP) was down 1.64% at $7.81. The stock fell short of the S&P 500, which registered a gain of 0.46% for the day. On the other hand, the Dow registered a gain of 0.17%, and the technology-centric Nasdaq increased by 0.57%.
The stock of company behind Snapchat has risen by 3.39% in the past month, lagging the Computer and Technology sector's gain of 4.54% and the S&P 500's gain of 4.22%.
The investment community will be paying close attention to the earnings performance of Snap in its upcoming release. The company's upcoming EPS is projected at $0.15, signifying a 6.25% drop compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.7 billion, up 9.12% from the year-ago period.
SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.32 per share and revenue of $5.91 billion. These results would represent year-over-year changes of +10.34% and +10.31%, respectively.
Investors might also notice recent changes to analyst estimates for Snap. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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. The Zacks Consensus EPS estimate has moved 8.03% higher within the past month. Snap is currently a Zacks Rank #2 (Buy).
In terms of valuation, Snap is presently being traded at a Forward P/E ratio of 24.81. This signifies a discount in comparison to the average Forward P/E of 29.41 for its industry.
It's also important to note that SNAP currently trades at a PEG ratio of 1.15. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.85.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 53, placing it within the top 22% of over 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.
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Snap Inc. (SNAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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