In the latest trading session, Snap (SNAP) closed at $10.26, marking a +0.59% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.07%. Meanwhile, the Dow gained 0.31%, and the Nasdaq, a tech-heavy index, lost 3.22%.
Coming into today, shares of the company behind Snapchat had gained 18.88% in the past month. In that same time, the Computer and Technology sector gained 11.67%, while the S&P 500 gained 4.64%.
Investors will be hoping for strength from Snap as it approaches its next earnings release, which is expected to be January 31, 2023. In that report, analysts expect Snap to post earnings of $0.10 per share. This would mark a year-over-year decline of 54.55%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.3 billion, up 0.47% from the year-ago period.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Within the past 30 days, our consensus EPS projection has moved 7.49% lower. Snap currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Snap is currently trading at a Forward P/E ratio of 39.23. For comparison, its industry has an average Forward P/E of 42.33, which means Snap is trading at a discount to the group.
We can also see that SNAP currently has a PEG ratio of 19.62. 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 2.24 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 55, putting it in the top 22% 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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