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Snap (SNAP) Outpaces Stock Market Gains: What You Should Know

Zacks Equity Research

Snap (SNAP) closed the most recent trading day at $13.78, moving +0.8% from the previous trading session. This change outpaced the S&P 500's 0.28% gain on the day. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq added 0.4%.

Coming into today, shares of the company behind Snapchat had lost 19.11% in the past month. In that same time, the Computer and Technology sector gained 0.51%, while the S&P 500 lost 0.14%.

Investors will be hoping for strength from SNAP as it approaches its next earnings release, which is expected to be October 22, 2019. On that day, SNAP is projected to report earnings of -$0.05 per share, which would represent year-over-year growth of 58.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $437.59 million, up 46.99% from the year-ago period.

SNAP's full-year Zacks Consensus Estimates are calling for earnings of -$0.20 per share and revenue of $1.70 billion. These results would represent year-over-year changes of +57.45% and +44.24%, respectively.

Investors might also notice recent changes to analyst estimates for SNAP. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, 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 0.42% higher. SNAP is currently sporting 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 76, putting it in the top 30% 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.

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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