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Snap (SNAP) Stock Slides as Market Rises: Facts to Know Before You Trade

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Snap (SNAP - Free Report) closed the most recent trading day at $7.05, moving -3.16% from the previous trading session. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow lost 0.48%, while the tech-heavy Nasdaq added 0.03%.

Prior to today's trading, shares of the company behind Snapchat had gained 0.14% lagged the Computer and Technology sector's gain of 3.1% and the S&P 500's gain of 2.09%.

Investors will be eagerly watching for the performance of Snap in its upcoming earnings disclosure. On that day, Snap is projected to report earnings of $0.06 per share, which would represent a year-over-year decline of 25%. Our most recent consensus estimate is calling for quarterly revenue of $1.49 billion, up 8.82% from the year-ago period.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.26 per share and a revenue of $5.88 billion, signifying shifts of -10.34% and +9.68%, respectively, from the last 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.54% lower. As of now, Snap holds a Zacks Rank of #3 (Hold).

Digging into valuation, Snap currently has a Forward P/E ratio of 28.41. This valuation marks a discount compared to its industry average Forward P/E of 31.58.

It is also worth noting that SNAP currently has a PEG ratio of 0.77. 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 Internet - Software industry had an average PEG ratio of 2.34 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning it in the top 31% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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