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Snap (SNAP) Laps the Stock Market: Here's Why

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Snap (SNAP - Free Report) closed the latest trading day at $15.87, indicating a +1.73% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.85%. At the same time, the Dow lost 0.09%, and the tech-heavy Nasdaq gained 1.53%.

Coming into today, shares of the company behind Snapchat had lost 0.13% in the past month. In that same time, the Computer and Technology sector lost 3.6%, while the S&P 500 gained 3.11%.

Investors will be eagerly watching for the performance of Snap in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.02, marking a 200% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.25 billion, indicating a 16.75% growth compared to the corresponding quarter of the prior year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.23 per share and a revenue of $5.34 billion, indicating changes of +155.56% and +15.97%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Snap. Such recent modifications usually signify the changing landscape 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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 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, the Zacks Consensus EPS estimate has shifted 4.74% upward. Snap is currently sporting a Zacks Rank of #2 (Buy).

With respect to valuation, Snap is currently being traded at a Forward P/E ratio of 66.99. This indicates a premium in contrast to its industry's Forward P/E of 30.18.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 72, positioning it in the top 29% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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