In the latest trading session, Snap (SNAP) closed at $9.12, marking a -2.15% move from the previous day. This change lagged the S&P 500's 0.61% gain on the day. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.95%.
Shares of the company behind Snapchat witnessed a gain of 9.78% over the previous month, beating the performance of the Computer and Technology sector with its gain of 5.6%, and the S&P 500's gain of 3.85%.
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. In the meantime, our current consensus estimate forecasts the revenue to be $1.34 billion, indicating a 7.96% growth compared to the corresponding quarter of the prior year.
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.
It is also important to note the recent changes to analyst estimates for Snap. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.09% increase. Snap is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Snap is currently exchanging hands at a Forward P/E ratio of 38.04. This signifies a premium in comparison to the average Forward P/E of 28.96 for its industry.
We can also see that SNAP currently has a PEG ratio of 1.08. 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. SNAP's industry had an average PEG ratio of 2.22 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 62, this industry ranks in the top 26% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Snap Inc. (SNAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
