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Snap (SNAP) Stock Declines While Market Improves: Some Information for Investors
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In the latest close session, Snap (SNAP - Free Report) was down 5.51% at $4.63. This change lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.18%.
The company behind Snapchat's stock has dropped by 8.75% in the past month, falling short of the Computer and Technology sector's loss of 3.85% and the S&P 500's loss of 4.28%.
Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.08, showcasing a 100% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.52 billion, indicating a 11.78% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.5 per share and a revenue of $6.76 billion, representing changes of +51.52% and +13.97%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Snap. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 7.62% lower within the past month. Snap is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Snap currently has a Forward P/E ratio of 9.82. This represents a discount compared to its industry average Forward P/E of 19.11.
It is also worth noting that SNAP currently has a PEG ratio of 0.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.04 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Snap (SNAP) Stock Declines While Market Improves: Some Information for Investors
In the latest close session, Snap (SNAP - Free Report) was down 5.51% at $4.63. This change lagged the S&P 500's daily gain of 0.11%. Elsewhere, the Dow saw a downswing of 0.13%, while the tech-heavy Nasdaq appreciated by 0.18%.
The company behind Snapchat's stock has dropped by 8.75% in the past month, falling short of the Computer and Technology sector's loss of 3.85% and the S&P 500's loss of 4.28%.
Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.08, showcasing a 100% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.52 billion, indicating a 11.78% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.5 per share and a revenue of $6.76 billion, representing changes of +51.52% and +13.97%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Snap. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. The Zacks Consensus EPS estimate has moved 7.62% lower within the past month. Snap is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Snap currently has a Forward P/E ratio of 9.82. This represents a discount compared to its industry average Forward P/E of 19.11.
It is also worth noting that SNAP currently has a PEG ratio of 0.28. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.04 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 152, putting it in the bottom 38% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.