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Snap (SNAP) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Snap (SNAP - Free Report) closed at $8.21, marking a +0.24% move from the previous day. This move outpaced the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the company behind Snapchat had lost 17.77% over the past month, lagging the Computer and Technology sector's loss of 5.51% and the S&P 500's loss of 3.6% in that time.
Snap will be looking to display strength as it nears its next earnings release. In that report, analysts expect Snap to post earnings of $0.10 per share. This would mark a year-over-year decline of 54.55%. Meanwhile, our latest consensus estimate is calling for revenue of $1.31 billion, up 0.8% from the prior-year quarter.
SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.15 per share and revenue of $4.61 billion. These results would represent year-over-year changes of -70% and +11.98%, 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 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.
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. The Zacks Consensus EPS estimate has moved 3.3% lower within the past month. Snap is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Snap is currently trading at a Forward P/E ratio of 55.21. Its industry sports an average Forward P/E of 44.43, so we one might conclude that Snap is trading at a premium comparatively.
It is also worth noting that SNAP currently has a PEG ratio of 27.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.1 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Snap (SNAP) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Snap (SNAP - Free Report) closed at $8.21, marking a +0.24% move from the previous day. This move outpaced the S&P 500's daily gain of 0.1%. At the same time, the Dow added 0.28%, and the tech-heavy Nasdaq lost 0.06%.
Heading into today, shares of the company behind Snapchat had lost 17.77% over the past month, lagging the Computer and Technology sector's loss of 5.51% and the S&P 500's loss of 3.6% in that time.
Snap will be looking to display strength as it nears its next earnings release. In that report, analysts expect Snap to post earnings of $0.10 per share. This would mark a year-over-year decline of 54.55%. Meanwhile, our latest consensus estimate is calling for revenue of $1.31 billion, up 0.8% from the prior-year quarter.
SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.15 per share and revenue of $4.61 billion. These results would represent year-over-year changes of -70% and +11.98%, 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 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.
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. The Zacks Consensus EPS estimate has moved 3.3% lower within the past month. Snap is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Snap is currently trading at a Forward P/E ratio of 55.21. Its industry sports an average Forward P/E of 44.43, so we one might conclude that Snap is trading at a premium comparatively.
It is also worth noting that SNAP currently has a PEG ratio of 27.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 2.1 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 54, putting it in the top 22% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.