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

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The latest trading session saw Snap (SNAP - Free Report) ending at $17.18, denoting a +0.94% adjustment from its last day's close. The stock's change was more than the S&P 500's daily gain of 0.59%. Elsewhere, the Dow saw an upswing of 0.68%, while the tech-heavy Nasdaq appreciated by 0.66%.

Shares of the company behind Snapchat have appreciated by 40.08% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.11% and the S&P 500's gain of 5.16%.

Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. In that report, analysts expect Snap to post earnings of $0.06 per share. This would mark a year-over-year decline of 57.14%. Simultaneously, our latest consensus estimate expects the revenue to be $1.37 billion, showing a 5.08% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.06 per share and revenue of $4.61 billion, indicating changes of -64.71% and +0.2%, respectively, compared to the previous year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Snap. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.

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 has moved 0.91% higher. Snap is currently sporting a Zacks Rank of #3 (Hold).

Investors should also note Snap's current valuation metrics, including its Forward P/E ratio of 296. This signifies a premium in comparison to the average Forward P/E of 39.68 for its industry.

It's also important to note that SNAP currently trades at a PEG ratio of 21.45. 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. SNAP's industry had an average PEG ratio of 1.8 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 28, finds itself in the top 12% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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