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

Zacks Equity Research

Snap (SNAP) closed the most recent trading day at $15.61, moving +0.26% from the previous trading session. This move lagged the S&P 500's daily gain of 0.46%. Elsewhere, the Dow gained 0.9%, while the tech-heavy Nasdaq added 0.59%.

Heading into today, shares of the company behind Snapchat had gained 10.35% over the past month, outpacing the Computer and Technology sector's gain of 5.19% and the S&P 500's gain of 4.04% in that time.

SNAP will be looking to display strength as it nears its next earnings release, which is expected to be July 23, 2019. The company is expected to report EPS of -$0.10, up 28.57% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $358.48 million, up 36.69% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.30 per share and revenue of $1.59 billion, which would represent changes of +36.17% and +34.94%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for SNAP. These revisions typically reflect the latest short-term business trends, which can change frequently. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SNAP currently has a Zacks Rank of #2 (Buy).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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