Snap (SNAP) closed the most recent trading day at $7.94, moving -4.34% from the previous trading session. This change lagged the S&P 500's daily loss of 1.13%. On the other hand, the Dow registered a loss of 1.79%, and the technology-centric Nasdaq decreased by 1.3%.
Coming into today, shares of the company behind Snapchat had lost 3.26% in the past month. In that same time, the Computer and Technology sector gained 7.36%, while the S&P 500 gained 3.55%.
The upcoming earnings release of Snap will be of great interest to investors. The company is forecasted to report an EPS of $0, showcasing a 100% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.34 billion, up 7.96% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.25 per share and a revenue of $5.82 billion, signifying shifts of -13.79% and +8.59%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Snap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, the Zacks Consensus EPS estimate has shifted 2.93% downward. Snap is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Snap is presently trading at a Forward P/E ratio of 33.88. This valuation marks a premium compared to its industry average Forward P/E of 28.14.
We can additionally observe that SNAP currently boasts a PEG ratio of 0.96. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 2.1 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Snap Inc. (SNAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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