Snap (SNAP) closed at $7.35 in the latest trading session, marking a -2.39% move from the prior day. This move lagged the S&P 500's daily loss of 2.06%. On the other hand, the Dow registered a loss of 1.76%, and the technology-centric Nasdaq decreased by 2.39%.
Shares of the company behind Snapchat witnessed a loss of 5.16% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.71%, and the S&P 500's gain of 1.63%.
The upcoming earnings release of Snap will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.15, reflecting a 6.25% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.7 billion, showing a 9.12% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.32 per share and revenue of $5.91 billion. These totals would mark changes of +10.34% and 0%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Snap. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Snap currently has a Zacks Rank of #2 (Buy).
In the context of valuation, Snap is at present trading with a Forward P/E ratio of 15.45. This denotes a discount relative to the industry average Forward P/E of 23.4.
We can also see that SNAP currently has a PEG ratio of 0.71. 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 Internet - Software industry currently had an average PEG ratio of 1.41 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 76, positioning it in the top 32% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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