Back to top

Image: Bigstock

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

Read MoreHide Full Article

In the latest trading session, Snap (SNAP - Free Report) closed at $62.79, marking a -1.41% move from the previous day. This move lagged the S&P 500's daily gain of 0.15%.

Heading into today, shares of the company behind Snapchat had gained 14.18% over the past month, outpacing the Computer and Technology sector's loss of 0.49% and the S&P 500's gain of 0.58% 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 -$0.02 per share. This would mark 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.

Investors should also note any recent changes to analyst estimates for SNAP. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SNAP is currently a Zacks Rank #3 (Hold).

In terms of valuation, SNAP is currently trading at a Forward P/E ratio of 289.5. For comparison, its industry has an average Forward P/E of 70.74, 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 189, putting it in the bottom 26% 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.

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


In-Depth Zacks Research for the Tickers Above


Normally $25 each - click below to receive one report FREE:


Snap Inc. (SNAP) - free report >>

Published in