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Snap (SNAP) Gains But Lags Market: What You Should Know

Zacks Equity Research
Zimmer (ZBH) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

In the latest trading session, Snap (SNAP) closed at $11, marking a +0.57% move from the previous day. This change lagged the S&P 500's 1.09% gain on the day. At the same time, the Dow added 0.84%, and the tech-heavy Nasdaq gained 1.42%.

Heading into today, shares of the company behind Snapchat had gained 18.4% over the past month, outpacing the Computer and Technology sector's gain of 4.97% and the S&P 500's gain of 1.18% in that time.

Investors will be hoping for strength from SNAP as it approaches its next earnings release. On that day, SNAP is projected to report earnings of -$0.12 per share, which would represent year-over-year growth of 29.41%. Our most recent consensus estimate is calling for quarterly revenue of $305.51 million, up 32.45% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.29 per share and revenue of $1.56 billion, which would represent changes of +38.3% and +32.15%, respectively, from the prior 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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Within the past 30 days, our consensus EPS projection has moved 1.7% higher. SNAP currently has a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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