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Snap (SNAP) Falls More Steeply Than Broader Market: What Investors Need to Know
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Snap (SNAP - Free Report) closed the latest trading day at $11.19, indicating a -1.76% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.65%. Elsewhere, the Dow saw a downswing of 0.49%, while the tech-heavy Nasdaq depreciated by 0.96%.
Shares of the company behind Snapchat witnessed a loss of 1.81% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.19% and the S&P 500's gain of 3.27%.
The investment community will be paying close attention to the earnings performance of Snap in its upcoming release. It is anticipated that the company will report an EPS of -$0.05, marking a 600% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.12 billion, indicating a 13.18% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.16 per share and a revenue of $5.22 billion, signifying shifts of +77.78% and +13.34%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Snap. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 1.94% rise in the Zacks Consensus EPS estimate. As of now, Snap holds a Zacks Rank of #3 (Hold).
Looking at valuation, Snap is presently trading at a Forward P/E ratio of 71.75. This signifies a premium in comparison to the average Forward P/E of 30.23 for its industry.
Also, we should mention that SNAP has a PEG ratio of 1.96. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.84.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Snap (SNAP) Falls More Steeply Than Broader Market: What Investors Need to Know
Snap (SNAP - Free Report) closed the latest trading day at $11.19, indicating a -1.76% change from the previous session's end. The stock's performance was behind the S&P 500's daily loss of 0.65%. Elsewhere, the Dow saw a downswing of 0.49%, while the tech-heavy Nasdaq depreciated by 0.96%.
Shares of the company behind Snapchat witnessed a loss of 1.81% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.19% and the S&P 500's gain of 3.27%.
The investment community will be paying close attention to the earnings performance of Snap in its upcoming release. It is anticipated that the company will report an EPS of -$0.05, marking a 600% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.12 billion, indicating a 13.18% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.16 per share and a revenue of $5.22 billion, signifying shifts of +77.78% and +13.34%, respectively, from the last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Snap. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Over the past month, there's been a 1.94% rise in the Zacks Consensus EPS estimate. As of now, Snap holds a Zacks Rank of #3 (Hold).
Looking at valuation, Snap is presently trading at a Forward P/E ratio of 71.75. This signifies a premium in comparison to the average Forward P/E of 30.23 for its industry.
Also, we should mention that SNAP has a PEG ratio of 1.96. 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. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.84.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 41, putting it in the top 17% 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.