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

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Snap (SNAP - Free Report) closed at $55.78 in the latest trading session, marking a -5.73% move from the prior day. This change lagged the S&P 500's daily loss of 0.67%.

On that day, SNAP is projected to report earnings of -$0.02 per share, which would represent year-over-year growth of 77.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $835.35 million, up 83.93% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.22 per share and revenue of $3.9 billion. These totals would mark changes of +466.67% and +55.52%, respectively, from last year.

Any recent changes to analyst estimates for SNAP should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.47% higher within the past month. SNAP is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, SNAP currently has a Forward P/E ratio of 268.95. For comparison, its industry has an average Forward P/E of 70.01, 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 193, putting it in the bottom 25% 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.

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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