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Snap (SNAP) Dips More Than Broader Markets: What You Should Know

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Snap (SNAP - Free Report) closed the most recent trading day at $73.53, moving -1.96% from the previous trading session. This move lagged the S&P 500's daily loss of 0.69%.

Heading into today, shares of the company behind Snapchat had gained 0.67% over the past month, outpacing the Computer and Technology sector's loss of 5.77% and the S&P 500's loss of 2.58% in that time.

SNAP will be looking to display strength as it nears its next earnings release, which is expected to be October 21, 2021. In that report, analysts expect SNAP to post earnings of $0.06 per share. This would mark year-over-year growth of 500%. Meanwhile, our latest consensus estimate is calling for revenue of $1.09 billion, up 59.98% from the prior-year quarter.

SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.34 per share and revenue of $4.21 billion. These results would represent year-over-year changes of +666.67% and +67.96%, respectively.

It is also important to note the 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. 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 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 remained stagnant. SNAP is holding a Zacks Rank of #3 (Hold) right now.

Investors should also note SNAP's current valuation metrics, including its Forward P/E ratio of 220.59. For comparison, its industry has an average Forward P/E of 63.14, which means SNAP is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 173, which puts it in the bottom 32% 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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