In the latest trading session, Snap (SNAP) closed at $9.27, marking a -1.17% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.83%. Meanwhile, the Dow gained 0.77%, and the Nasdaq, a tech-heavy index, added 1.02%.
Shares of the company behind Snapchat witnessed a gain of 11.01% over the previous month, beating the performance of the Computer and Technology sector with its gain of 8.25%, and the S&P 500's gain of 4.99%.
The upcoming earnings release of Snap will be of great interest to investors. The company's upcoming EPS is projected at $0, signifying a 100.00% drop compared to the same quarter of the previous 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 full year, the Zacks Consensus Estimates project earnings of $0.25 per share and a revenue of $5.82 billion, demonstrating changes of -13.79% and +8.59%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Snap. These recent revisions tend to reflect the evolving nature of short-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. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.09% higher within the past month. Snap currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Snap is holding a Forward P/E ratio of 38.29. This valuation marks a premium compared to its industry average Forward P/E of 28.74.
Also, we should mention that SNAP has a PEG ratio of 1.09. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 2.22 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 46, positioning it in the top 19% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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