In the latest close session, Snap (SNAP) was up +1.48% at $8.25. The stock's performance was ahead of the S&P 500's daily gain of 0.64%. Elsewhere, the Dow saw an upswing of 1.23%, while the tech-heavy Nasdaq appreciated by 0.69%.
The stock of company behind Snapchat has risen by 2.78% in the past month, leading the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.55%.
Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.15, showcasing a 6.25% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.7 billion, up 9.12% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.32 per share and a revenue of $5.91 billion, signifying shifts of +10.34% and 0%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Snap. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Snap is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Snap is currently trading at a Forward P/E ratio of 16.68. This indicates a discount in contrast to its industry's Forward P/E of 24.2.
Meanwhile, SNAP's PEG ratio is currently 0.77. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. SNAP's industry had an average PEG ratio of 1.54 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 58, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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