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Snap (SNAP) Beats Stock Market Upswing: What Investors Need to Know

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Snap (SNAP - Free Report) ended the recent trading session at $17.02, demonstrating a +0.59% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a gain of 0.45% for the day.

Investors will be eagerly watching for the performance of Snap in its upcoming earnings disclosure. On that day, Snap is projected to report earnings of $0.05 per share, which would represent a year-over-year decline of 64.29%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.36 billion, up 4.74% from the year-ago period.

SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.05 per share and revenue of $4.61 billion. These results would represent year-over-year changes of -70.59% and +0.2%, respectively.

It's also important for investors to be aware of any recent modifications to analyst estimates for Snap. These revisions help to show the ever-changing nature of 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.36% higher within the past month. Snap is currently sporting a Zacks Rank of #3 (Hold).

With respect to valuation, Snap is currently being traded at a Forward P/E ratio of 314.79. This valuation marks a premium compared to its industry's average Forward P/E of 40.21.

We can additionally observe that SNAP currently boasts a PEG ratio of 22.81. 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 average PEG ratio for the Internet - Software industry stood at 1.8 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 26, finds itself in the top 11% echelons 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.

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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