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

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Snap (SNAP - Free Report) closed at $63.74 in the latest trading session, marking a +1.67% move from the prior day. The stock outpaced the S&P 500's daily gain of 0.65%. Elsewhere, the Dow gained 0.53%, while the tech-heavy Nasdaq added 1.05%.

Heading into today, shares of the company behind Snapchat had gained 0.74% over the past month, outpacing the Computer and Technology sector's loss of 6.78% and the S&P 500's gain of 0.36% in that time.

Investors will be hoping for strength from SNAP as it approaches its next earnings release. In that report, analysts expect SNAP to post earnings of -$0.06 per share. This would mark year-over-year growth of 25%. Our most recent consensus estimate is calling for quarterly revenue of $739.7 million, up 59.94% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.12 per share and revenue of $3.82 billion. These totals would mark changes of +300% and +52.41%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for SNAP. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. Over the past month, the Zacks Consensus EPS estimate has moved 1.85% higher. SNAP is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, SNAP is holding a Forward P/E ratio of 509.67. For comparison, its industry has an average Forward P/E of 71.45, which means SNAP is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 174, putting it in the bottom 32% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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