Snap (SNAP) Exceeds Market Returns: Some Facts to Consider
The most recent trading session ended with Snap (SNAP) standing at $11.45, reflecting a +1.24% shift from the previouse trading day's closing. The stock's performance was ahead of the S&P 500's daily gain of 0.86%. At the same time, the Dow added 1.22%, and the tech-heavy Nasdaq gained 0.51%.
Prior to today's trading, shares of the company behind Snapchat had gained 3.76% over the past month. This has traded in line with the Computer and Technology sector and outpaced the S&P 500's gain of 2.84% in that time.
The investment community will be closely monitoring the performance of Snap in its forthcoming earnings report. The company's upcoming EPS is projected at -$0.05, signifying a 600% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.12 billion, up 13.18% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.16 per share and a revenue of $5.22 billion, signifying shifts of +77.78% and +13.34%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Snap. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 1.94% higher. Snap currently has a Zacks Rank of #3 (Hold).
Investors should also note Snap's current valuation metrics, including its Forward P/E ratio of 71.24. This indicates a premium in contrast to its industry's Forward P/E of 30.17.
It's also important to note that SNAP currently trades at a PEG ratio of 1.95. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.85 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 40, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SNAP in the coming trading sessions, be sure to utilize Zacks.com.
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Snap Inc. (SNAP) : Free Stock Analysis Report
