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Here's Why Snap (SNAP) Fell More Than Broader Market

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Snap (SNAP - Free Report) ended the recent trading session at $7.76, demonstrating a -1.9% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.63%. Elsewhere, the Dow saw a downswing of 0.65%, while the tech-heavy Nasdaq depreciated by 0.47%.

Coming into today, shares of the company behind Snapchat had lost 1% in the past month. In that same time, the Computer and Technology sector gained 1.9%, while the S&P 500 gained 0.92%.

The investment community will be closely monitoring the performance of Snap in its forthcoming earnings report. The company is scheduled to release its earnings on November 5, 2025. The company's earnings per share (EPS) are projected to be $0.06, reflecting a 25% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.49 billion, up 8.82% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.26 per share and a revenue of $5.89 billion, representing changes of -10.34% and +9.78%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Snap. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.72% upward. Snap is currently sporting a Zacks Rank of #4 (Sell).

In the context of valuation, Snap is at present trading with a Forward P/E ratio of 30.87. This indicates a premium in contrast to its industry's Forward P/E of 29.25.

We can also see that SNAP currently has a PEG ratio of 0.84. 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 the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 1.98.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 26% echelons of all 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.

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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