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

Zacks Equity Research

Snap (SNAP) closed at $19.73 in the latest trading session, marking a -0.1% move from the prior day. This change lagged the S&P 500's 1.37% gain on the day. Elsewhere, the Dow gained 2.05%, while the tech-heavy Nasdaq added 0.78%.

SNAP will be looking to display strength as it nears its next earnings release. In that report, analysts expect SNAP to post earnings of -$0.11 per share. This would mark a year-over-year decline of 83.33%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $427.65 million, up 10.21% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.23 per share and revenue of $2.07 billion, which would represent changes of -43.75% and +20.52%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for SNAP. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SNAP currently has a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% 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.


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