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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 $11.24, moving +0.27% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Heading into today, shares of the company behind Snapchat had gained 5.26% over the past month, lagging the Computer and Technology sector's gain of 10.71% and outpacing the S&P 500's gain of 3.71% in that time.
Wall Street will be looking for positivity from Snap as it approaches its next earnings report date. On that day, Snap is projected to report earnings of $0.10 per share, which would represent year-over-year growth of 600%. Meanwhile, our latest consensus estimate is calling for revenue of $1.01 billion, down 5.42% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.18 per share and revenue of $4.71 billion, which would represent changes of +5.88% and +2.38%, respectively, from the prior year.
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.
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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Snap is currently a Zacks Rank #3 (Hold).
Digging into valuation, Snap currently has a Forward P/E ratio of 61.15. Its industry sports an average Forward P/E of 43.25, so we one might conclude that Snap is trading at a premium comparatively.
Also, we should mention that SNAP has a PEG ratio of 1.31. 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. The Internet - Software was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% 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.
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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 $11.24, moving +0.27% from the previous trading session. The stock lagged the S&P 500's daily gain of 0.37%. At the same time, the Dow added 0.98%, and the tech-heavy Nasdaq gained 0.62%.
Heading into today, shares of the company behind Snapchat had gained 5.26% over the past month, lagging the Computer and Technology sector's gain of 10.71% and outpacing the S&P 500's gain of 3.71% in that time.
Wall Street will be looking for positivity from Snap as it approaches its next earnings report date. On that day, Snap is projected to report earnings of $0.10 per share, which would represent year-over-year growth of 600%. Meanwhile, our latest consensus estimate is calling for revenue of $1.01 billion, down 5.42% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.18 per share and revenue of $4.71 billion, which would represent changes of +5.88% and +2.38%, respectively, from the prior year.
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.
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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Snap is currently a Zacks Rank #3 (Hold).
Digging into valuation, Snap currently has a Forward P/E ratio of 61.15. Its industry sports an average Forward P/E of 43.25, so we one might conclude that Snap is trading at a premium comparatively.
Also, we should mention that SNAP has a PEG ratio of 1.31. 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. The Internet - Software was holding an average PEG ratio of 1.74 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 51, putting it in the top 21% 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.