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Snap (SNAP) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest trading session, Snap (SNAP - Free Report) closed at $7.77, marking a -1.02% move from the previous day. This move lagged the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, lost 0.93%.
Shares of the company behind Snapchat have depreciated by 6.77% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.25%, and the S&P 500's gain of 1.13%.
The upcoming earnings release of Snap will be of great interest to investors. The company's earnings report is expected 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. At the same time, our most recent consensus estimate is projecting a revenue of $1.49 billion, reflecting a 8.82% rise from the equivalent quarter last year.
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 +9.88%, respectively, from the prior year.
Any recent changes to analyst estimates for Snap should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.72% higher. As of now, Snap holds a Zacks Rank of #4 (Sell).
From a valuation perspective, Snap is currently exchanging hands at a Forward P/E ratio of 30.63. For comparison, its industry has an average Forward P/E of 29.31, which means Snap is trading at a premium to the group.
It's also important to note that SNAP currently trades at a PEG ratio of 0.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.1.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 71, finds itself in the top 29% echelons 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.
To follow SNAP in the coming trading sessions, be sure to utilize Zacks.com.
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Snap (SNAP) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest trading session, Snap (SNAP - Free Report) closed at $7.77, marking a -1.02% move from the previous day. This move lagged the S&P 500's daily loss of 0.53%. Meanwhile, the Dow lost 0.71%, and the Nasdaq, a tech-heavy index, lost 0.93%.
Shares of the company behind Snapchat have depreciated by 6.77% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.25%, and the S&P 500's gain of 1.13%.
The upcoming earnings release of Snap will be of great interest to investors. The company's earnings report is expected 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. At the same time, our most recent consensus estimate is projecting a revenue of $1.49 billion, reflecting a 8.82% rise from the equivalent quarter last year.
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 +9.88%, respectively, from the prior year.
Any recent changes to analyst estimates for Snap should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.72% higher. As of now, Snap holds a Zacks Rank of #4 (Sell).
From a valuation perspective, Snap is currently exchanging hands at a Forward P/E ratio of 30.63. For comparison, its industry has an average Forward P/E of 29.31, which means Snap is trading at a premium to the group.
It's also important to note that SNAP currently trades at a PEG ratio of 0.84. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.1.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 71, finds itself in the top 29% echelons 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.
To follow SNAP in the coming trading sessions, be sure to utilize Zacks.com.