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Why Snap (SNAP) Outpaced the Stock Market Today

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Snap (SNAP - Free Report) ended the recent trading session at $8.14, demonstrating a +1.37% change from the preceding day's closing price. The stock outpaced the S&P 500's daily gain of 0.8%. Meanwhile, the Dow gained 0.94%, and the Nasdaq, a tech-heavy index, added 0.97%.

Heading into today, shares of the company behind Snapchat had lost 3.72% over the past month, lagging the Computer and Technology sector's gain of 8.5% and the S&P 500's gain of 5.12%.

Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0, signifying a 100.00% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.34 billion, indicating a 7.96% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.25 per share and revenue of $5.82 billion, indicating changes of -13.79% and +8.59%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Snap should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 moved 1.09% higher. Snap is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Snap has a Forward P/E ratio of 32.78 right now. This valuation marks a premium compared to its industry average Forward P/E of 28.

Investors should also note that SNAP has a PEG ratio of 0.93 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.22 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 48, this industry ranks in the top 20% of all industries, numbering over 250.

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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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