The most recent trading session ended with Snap (SNAP) standing at $7.98, reflecting a +1.66% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 1.67%. At the same time, the Dow added 1.07%, and the tech-heavy Nasdaq gained 2.5%.
The the stock of company behind Snapchat has fallen by 18.48% in the past month, lagging the Computer and Technology sector's loss of 9.93% and the S&P 500's loss of 6.57%.
Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. The company's earnings report is set to go public on April 29, 2025. On that day, Snap is projected to report earnings of $0.04 per share, which would represent year-over-year growth of 33.33%. At the same time, our most recent consensus estimate is projecting a revenue of $1.35 billion, reflecting a 12.73% rise from the equivalent quarter last year.
SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.34 per share and revenue of $5.99 billion. These results would represent year-over-year changes of +17.24% and +11.79%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections 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 company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. The Zacks Consensus EPS estimate has moved 6.13% lower within the past month. Right now, Snap possesses a Zacks Rank of #3 (Hold).
In the context of valuation, Snap is at present trading with a Forward P/E ratio of 23.02. This valuation marks a discount compared to its industry's average Forward P/E of 24.08.
It's also important to note that SNAP currently trades at a PEG ratio of 0.75. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.96.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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