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

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Snap (SNAP - Free Report) closed the most recent trading day at $31.80, moving -1% from the previous trading session. This change lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 0.16%.

Coming into today, shares of the company behind Snapchat had lost 34.02% in the past month. In that same time, the Computer and Technology sector lost 10.69%, while the S&P 500 lost 5.39%.

Snap will be looking to display strength as it nears its next earnings release, which is expected to be February 3, 2022. The company is expected to report EPS of $0.09, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.19 billion, up 30.83% from the prior-year quarter.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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 has moved 7.18% lower. Snap is holding a Zacks Rank of #4 (Sell) right now.

Looking at its valuation, Snap is holding a Forward P/E ratio of 61.1. This represents a premium compared to its industry's average Forward P/E of 45.97.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 39% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow SNAP in the coming trading sessions, be sure to utilize Zacks.com.


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