The most recent trading session ended with Snap (SNAP – Free Report) standing at $10.99, reflecting a -1.88% shift from the previouse trading day’s closing. This change lagged the S&P 500’s daily loss of 1.11%. On the other hand, the Dow registered a loss of 0.77%, and the technology-centric Nasdaq decreased by 1.49%.
The company behind Snapchat’s stock has dropped by 3.53% in the past month, falling short of the Computer and Technology sector’s gain of 5.27% and the S&P 500’s gain of 0.4%.
Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. On that day, Snap is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.55 billion, up 13.99% from the year-ago period.
SNAP’s full-year Zacks Consensus Estimates are calling for earnings of $0.25 per share and revenue of $5.36 billion. These results would represent year-over-year changes of +177.78% and +16.28%, respectively.
Any recent changes to analyst estimates for Snap should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Right now, Snap possesses a Zacks Rank of #2 (Buy).
Looking at valuation, Snap is presently trading at a Forward P/E ratio of 44.6. For comparison, its industry has an average Forward P/E of 33.42, which means Snap is trading at a premium to the group.
The Internet – Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 23, this industry ranks in the top 10% of all industries, numbering over 250.
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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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