In the latest trading session, Snap (SNAP) closed at $7.99, marking a -2.44% move from the previous day. This move lagged the S&P 500's daily loss of 0.19%. At the same time, the Dow lost 0.8%, and the tech-heavy Nasdaq lost 0.1%.
Shares of the company behind Snapchat have appreciated by 12.81% over the course of the past month, outperforming the Computer and Technology sector's gain of 2.62%, and the S&P 500's gain of 2.26%.
Market participants will be closely following the financial results of Snap in its upcoming release. The company's earnings per share (EPS) are projected to be $0.15, reflecting a 6.25% decrease from the same quarter last year. 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.
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 0%, respectively.
Investors might also notice recent changes to analyst estimates for Snap. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Currently, Snap is carrying a Zacks Rank of #2 (Buy).
With respect to valuation, Snap is currently being traded at a Forward P/E ratio of 16.8. This signifies a discount in comparison to the average Forward P/E of 24.44 for its industry.
Investors should also note that SNAP has a PEG ratio of 0.78 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Software industry currently had an average PEG ratio of 1.5 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 56, this industry ranks in the top 23% of all industries, numbering over 250.
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.
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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