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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 $10.01 in the latest trading session, marking a -1.28% move from the prior day. This change lagged the S&P 500's 0.09% gain on the day. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.98%.
Heading into today, shares of the company behind Snapchat had lost 10.98% over the past month, lagging the Computer and Technology sector's gain of 2.75% and the S&P 500's gain of 4.59% in that time.
Investors will be hoping for strength from Snap as it approaches its next earnings release, which is expected to be April 27, 2023. On that day, Snap is projected to report earnings of -$0.01 per share, which would represent year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.01 billion, down 5.42% from the year-ago period.
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.
Any recent changes to analyst estimates for Snap should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Snap is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Snap is currently trading at a Forward P/E ratio of 55.31. For comparison, its industry has an average Forward P/E of 41.29, which means Snap is trading at a premium to the group.
Investors should also note that SNAP has a PEG ratio of 1.18 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.66 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Snap (SNAP) Stock Sinks As Market Gains: What You Should Know
Snap (SNAP - Free Report) closed at $10.01 in the latest trading session, marking a -1.28% move from the prior day. This change lagged the S&P 500's 0.09% gain on the day. Meanwhile, the Dow gained 0.07%, and the Nasdaq, a tech-heavy index, added 0.98%.
Heading into today, shares of the company behind Snapchat had lost 10.98% over the past month, lagging the Computer and Technology sector's gain of 2.75% and the S&P 500's gain of 4.59% in that time.
Investors will be hoping for strength from Snap as it approaches its next earnings release, which is expected to be April 27, 2023. On that day, Snap is projected to report earnings of -$0.01 per share, which would represent year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.01 billion, down 5.42% from the year-ago period.
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.
Any recent changes to analyst estimates for Snap should also be noted by investors. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Snap is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Snap is currently trading at a Forward P/E ratio of 55.31. For comparison, its industry has an average Forward P/E of 41.29, which means Snap is trading at a premium to the group.
Investors should also note that SNAP has a PEG ratio of 1.18 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.66 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 62, putting it in the top 25% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.