In the latest trading session, Snap (SNAP) closed at $9.12, marking a -2.15% move from the previous day. This change lagged the S&P 500's 0.61% gain on the day. Meanwhile, the Dow gained 0.49%, and the Nasdaq, a tech-heavy index, added 0.95%.
Shares of the company behind Snapchat witnessed a gain of 9.78% over the previous month, beating the performance of the Computer and Technology sector with its gain of 5.6%, and the S&P 500's gain of 3.85%.
The upcoming earnings release of Snap will be of great interest to investors. The company is forecasted to report an EPS of $0, showcasing a 100% downward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $1.34 billion, indicating a 7.96% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $0.25 per share and a revenue of $5.82 billion, demonstrating changes of -13.79% and +8.59%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Snap. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.09% increase. Snap is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, Snap is currently exchanging hands at a Forward P/E ratio of 38.04. This signifies a premium in comparison to the average Forward P/E of 28.96 for its industry.
We can also see that SNAP currently has a PEG ratio of 1.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SNAP's industry had an average PEG ratio of 2.22 as of yesterday's close.
The Internet – Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 62, this industry ranks in the top 26% of all industries, numbering over 250.
