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

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Snap (SNAP - Free Report) closed at $10.66 in the latest trading session, marking a -0.37% move from the prior day. This move lagged the S&P 500's daily gain of 0.89%. At the same time, the Dow added 1.2%, and the tech-heavy Nasdaq lost 0.68%.

Heading into today, shares of the company behind Snapchat had gained 3.28% over the past month, outpacing the Computer and Technology sector's gain of 2.42% and the S&P 500's loss of 3.9% in that time.

Snap will be looking to display strength as it nears its next earnings release. In that report, analysts expect Snap to post earnings of -$0.01 per share. This would mark year-over-year growth of 50%. Our most recent consensus estimate is calling for quarterly revenue of $1.01 billion, down 5.42% from the year-ago period.

SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.18 per share and revenue of $4.71 billion. These results would represent year-over-year changes of +5.88% and +2.38%, respectively.

Investors should also note any recent changes to analyst estimates for Snap. These revisions help to show the ever-changing nature of near-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. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. Snap is currently sporting a Zacks Rank of #3 (Hold).

In terms of valuation, Snap is currently trading at a Forward P/E ratio of 58.36. Its industry sports an average Forward P/E of 41.28, so we one might conclude that Snap is trading at a premium comparatively.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 66, which puts it in the top 27% 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.

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