Snap (SNAP) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Snap (SNAP) closed at $11.16, marking a -0.36% move from the previous day. The stock's performance was behind the S&P 500's daily gain of 0.32%. On the other hand, the Dow registered a gain of 0.68%, and the technology-centric Nasdaq increased by 0.2%.
Heading into today, shares of the company behind Snapchat had gained 4.28% over the past month, lagging the Computer and Technology sector's gain of 6.04% and the S&P 500's gain of 5.11% in that time.
The investment community will be closely monitoring the performance of Snap in its forthcoming earnings report. The company is predicted to post an EPS of -$0.05, indicating a 600% decline compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $1.12 billion, showing a 13.18% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.16 per share and a revenue of $5.22 billion, signifying shifts of +77.78% and +13.34%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Snap. Recent revisions tend to reflect the latest near-term business trends. 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 take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 1.94% higher. Snap is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Snap is currently exchanging hands at a Forward P/E ratio of 70.55. This denotes a premium relative to the industry's average Forward P/E of 30.66.
Also, we should mention that SNAP has a PEG ratio of 1.93. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.82.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% 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
