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Snap (SNAP) Gains But Lags Market: What You Should Know
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Snap (SNAP - Free Report) closed the most recent trading day at $15.28, moving +0.86% from the previous trading session. This move lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq lost 0.28%.
Coming into today, shares of the company behind Snapchat had lost 35.23% in the past month. In that same time, the Computer and Technology sector lost 0.21%, while the S&P 500 gained 0.1%.
Investors will be hoping for strength from Snap as it approaches its next earnings release. The company is expected to report EPS of -$0.01, down 110% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.16 billion, up 17.88% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.21 per share and revenue of $5.28 billion, which would represent changes of -58% and +28.28%, respectively, from the prior year.
Any recent changes to analyst estimates for Snap should also be noted by investors. 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.
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 12.91% lower within the past month. Snap is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Snap's current valuation metrics, including its Forward P/E ratio of 73.46. Its industry sports an average Forward P/E of 44.07, so we one might conclude that Snap is trading at a premium comparatively.
We can also see that SNAP currently has a PEG ratio of 3.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SNAP's industry had an average PEG ratio of 3.03 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 156, 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.
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) Gains But Lags Market: What You Should Know
Snap (SNAP - Free Report) closed the most recent trading day at $15.28, moving +0.86% from the previous trading session. This move lagged the S&P 500's daily gain of 0.95%. Elsewhere, the Dow gained 0.8%, while the tech-heavy Nasdaq lost 0.28%.
Coming into today, shares of the company behind Snapchat had lost 35.23% in the past month. In that same time, the Computer and Technology sector lost 0.21%, while the S&P 500 gained 0.1%.
Investors will be hoping for strength from Snap as it approaches its next earnings release. The company is expected to report EPS of -$0.01, down 110% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.16 billion, up 17.88% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.21 per share and revenue of $5.28 billion, which would represent changes of -58% and +28.28%, respectively, from the prior year.
Any recent changes to analyst estimates for Snap should also be noted by investors. 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.
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 12.91% lower within the past month. Snap is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Snap's current valuation metrics, including its Forward P/E ratio of 73.46. Its industry sports an average Forward P/E of 44.07, so we one might conclude that Snap is trading at a premium comparatively.
We can also see that SNAP currently has a PEG ratio of 3.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SNAP's industry had an average PEG ratio of 3.03 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 156, 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.