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Snap (SNAP) Dips More Than Broader Markets: What You Should Know

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In the latest trading session, Snap (SNAP - Free Report) closed at $72.48, marking a -1.55% move from the previous day. This change lagged the S&P 500's daily loss of 0.16%.

Prior to today's trading, shares of the company behind Snapchat had gained 2.31% over the past month. This has lagged the Computer and Technology sector's gain of 2.75% and outpaced the S&P 500's gain of 0.46% in that time.

SNAP will be looking to display strength as it nears its next earnings release. In that report, analysts expect SNAP to post earnings of $0.06 per share. This would mark year-over-year growth of 500%. Meanwhile, our latest consensus estimate is calling for revenue of $1.09 billion, up 59.98% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.34 per share and revenue of $4.21 billion. These totals would mark changes of +666.67% and +67.96%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for SNAP. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. SNAP is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that SNAP has a Forward P/E ratio of 216.53 right now. This represents a premium compared to its industry's average Forward P/E of 59.76.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 20% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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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