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Why Snap (SNAP) Dipped More Than Broader Market Today
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In the latest trading session, Snap (SNAP - Free Report) closed at $8.01, marking a -2.67% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.22%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.51%.
Coming into today, shares of the company behind Snapchat had lost 2.37% in the past month. In that same time, the Computer and Technology sector gained 2.98%, while the S&P 500 gained 0.45%.
Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0, reflecting a 100% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.34 billion, up 7.96% from the prior-year quarter.
SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.25 per share and revenue of $5.82 billion. These results would represent year-over-year changes of -13.79% and +8.59%, respectively.
It is also important to note the recent changes to analyst estimates for Snap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has shifted 1.09% upward. Currently, Snap is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Snap is presently trading at a Forward P/E ratio of 33.59. For comparison, its industry has an average Forward P/E of 27.94, which means Snap is trading at a premium to the group.
Meanwhile, SNAP's PEG ratio is currently 0.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.11.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 22% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Why Snap (SNAP) Dipped More Than Broader Market Today
In the latest trading session, Snap (SNAP - Free Report) closed at $8.01, marking a -2.67% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.22%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, lost 0.51%.
Coming into today, shares of the company behind Snapchat had lost 2.37% in the past month. In that same time, the Computer and Technology sector gained 2.98%, while the S&P 500 gained 0.45%.
Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0, reflecting a 100% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.34 billion, up 7.96% from the prior-year quarter.
SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.25 per share and revenue of $5.82 billion. These results would represent year-over-year changes of -13.79% and +8.59%, respectively.
It is also important to note the recent changes to analyst estimates for Snap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 has shifted 1.09% upward. Currently, Snap is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Snap is presently trading at a Forward P/E ratio of 33.59. For comparison, its industry has an average Forward P/E of 27.94, which means Snap is trading at a premium to the group.
Meanwhile, SNAP's PEG ratio is currently 0.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.11.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 52, placing it within the top 22% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.