Snap (SNAP) closed at $7.46 in the latest trading session, marking a -1.32% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.41% for the day. Meanwhile, the Dow lost 0.83%, and the Nasdaq, a tech-heavy index, added 0.91%.
Shares of the company behind Snapchat have depreciated by 4.06% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.49%, and the S&P 500's gain of 0.38%.
The investment community will be paying close attention to the earnings performance of Snap in its upcoming release. The company is slated to reveal its earnings on February 4, 2026. 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.
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.
It is also important to note the recent changes to analyst estimates for Snap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 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).
Looking at its valuation, Snap is holding a Forward P/E ratio of 15.51. This denotes a discount relative to the industry average Forward P/E of 24.04.
We can also see that SNAP currently has a PEG ratio of 0.72. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.42.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 32% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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