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Snap (SNAP) Gains As Market Dips: What You Should Know
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Snap (SNAP - Free Report) closed at $10.82 in the latest trading session, marking a +1.69% move from the prior day. This change outpaced the S&P 500's 0.77% loss on the day. Elsewhere, the Dow lost 0.65%, while the tech-heavy Nasdaq lost 2.23%.
Prior to today's trading, shares of the company behind Snapchat had gained 8.79% over the past month. This has outpaced the Computer and Technology sector's gain of 6.75% and the S&P 500's gain of 4.66% in that time.
Investors will be hoping for strength from Snap as it approaches its next earnings release. The company is expected to report EPS of -$0.05, down 150% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, down 5.79% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.04 per share and revenue of $4.51 billion, which would represent changes of -76.47% and -2.03%, respectively, from the prior year.
Any recent changes to analyst estimates for Snap should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Snap is currently a Zacks Rank #3 (Hold).
Investors should also note Snap's current valuation metrics, including its Forward P/E ratio of 245.54. Its industry sports an average Forward P/E of 41.13, so we one might conclude that Snap is trading at a premium comparatively.
It is also worth noting that SNAP currently has a PEG ratio of 17.79. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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 As Market Dips: What You Should Know
Snap (SNAP - Free Report) closed at $10.82 in the latest trading session, marking a +1.69% move from the prior day. This change outpaced the S&P 500's 0.77% loss on the day. Elsewhere, the Dow lost 0.65%, while the tech-heavy Nasdaq lost 2.23%.
Prior to today's trading, shares of the company behind Snapchat had gained 8.79% over the past month. This has outpaced the Computer and Technology sector's gain of 6.75% and the S&P 500's gain of 4.66% in that time.
Investors will be hoping for strength from Snap as it approaches its next earnings release. The company is expected to report EPS of -$0.05, down 150% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, down 5.79% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.04 per share and revenue of $4.51 billion, which would represent changes of -76.47% and -2.03%, respectively, from the prior year.
Any recent changes to analyst estimates for Snap should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Snap is currently a Zacks Rank #3 (Hold).
Investors should also note Snap's current valuation metrics, including its Forward P/E ratio of 245.54. Its industry sports an average Forward P/E of 41.13, so we one might conclude that Snap is trading at a premium comparatively.
It is also worth noting that SNAP currently has a PEG ratio of 17.79. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.8 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 103, which puts it in the top 41% 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.