Snap (SNAP – Free Report) closed the most recent trading day at $9.33, moving +1.08% from the previous trading session. The stock’s change was more than the S&P 500’s daily gain of 0.08%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 0.52%.
Prior to today’s trading, shares of the company behind Snapchat had lost 13.58% over the past month. This has lagged the Computer and Technology sector’s loss of 12.04% and the S&P 500’s loss of 7.33% in that time.
The upcoming earnings release of Snap will be of great interest to investors. The company is forecasted to report an EPS of $0.04, showcasing a 33.33% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.35 billion, indicating a 12.82% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.37 per share and a revenue of $6.11 billion, representing changes of +27.59% and +13.9%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Snap. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts’ positivity towards the company’s business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, there’s been a 3.69% rise in the Zacks Consensus EPS estimate. Snap is currently a Zacks Rank #3 (Hold).
Looking at valuation, Snap is presently trading at a Forward P/E ratio of 24.95. This valuation marks a discount compared to its industry’s average Forward P/E of 27.92.
We can additionally observe that SNAP currently boasts a PEG ratio of 0.68. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. The average PEG ratio for the Internet – Software industry stood at 2.06 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 81, this industry ranks in the top 33% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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