Snap (SNAP) Registers a Bigger Fall Than the Market: Important Facts to Note
Snap (SNAP) closed the latest trading day at $11.03, indicating a -1.96% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.12%. Elsewhere, the Dow lost 0.25%, while the tech-heavy Nasdaq lost 0.41%.
Shares of the company behind Snapchat have depreciated by 34.02% over the course of the past month, underperforming the Computer and Technology sector's gain of 6.12% and the S&P 500's gain of 4.83%.
Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. On that day, Snap is projected to report earnings of -$0.05 per share, which would represent a year-over-year decline of 600%. Meanwhile, our latest consensus estimate is calling for revenue of $1.12 billion, up 13.18% from the prior-year quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.16 per share and a revenue of $5.22 billion, indicating changes of +77.78% and +13.34%, respectively, from the former 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 11.5% higher. Snap currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Snap currently has a Forward P/E ratio of 70.87. This denotes a premium relative to the industry's average Forward P/E of 31.25.
One should further note that SNAP currently holds a PEG ratio of 1.94. 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. The Internet - Software industry had an average PEG ratio of 1.82 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Snap Inc. (SNAP) : Free Stock Analysis Report
