U.S. Markets closed

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

Zacks Equity Research
Coke (KO) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

Snap (SNAP) closed at $11.67 in the latest trading session, marking a -0.68% move from the prior day. This change lagged the S&P 500's daily gain of 0.16%. Elsewhere, the Dow gained 0.42%, while the tech-heavy Nasdaq added 0.03%.

Heading into today, shares of the company behind Snapchat had gained 7.4% over the past month, outpacing the Computer and Technology sector's gain of 4.43% and the S&P 500's gain of 2.89% in that time.

SNAP will be looking to display strength as it nears its next earnings release, which is expected to be April 23, 2019. 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 $306.32 million, up 32.8% from the year-ago period.

SNAP's full-year Zacks Consensus Estimates are calling for earnings of -$0.29 per share and revenue of $1.56 billion. These results would represent year-over-year changes of +38.3% and +32.41%, respectively.

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 such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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 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 0.15% higher. SNAP is currently a Zacks Rank #1 (Strong Buy).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 30, which puts it in the top 12% 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Snap Inc. (SNAP) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.