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Snap (SNAP) Outpaces Stock Market Gains: What You Should Know
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In the latest trading session, Snap (SNAP - Free Report) closed at $12.42, marking a +1.64% move from the previous day. This change outpaced the S&P 500's 0.22% gain on the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.2%.
Prior to today's trading, shares of the company behind Snapchat had lost 47.33% over the past month. This has lagged the Computer and Technology sector's loss of 8.36% and the S&P 500's loss of 8.32% in that time.
Investors will be hoping for strength from Snap as it approaches its next earnings release. On that day, Snap is projected to report earnings of -$0.01 per share, which would represent a year-over-year decline of 110%. Meanwhile, our latest consensus estimate is calling for revenue of $1.16 billion, up 17.84% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.19 per share and revenue of $5.23 billion. These totals would mark changes of -62% and +27.03%, respectively, from last year.
Any recent changes to analyst estimates for Snap should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 18.54% lower. 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 66.05 right now. This valuation marks a premium compared to its industry's average Forward P/E of 38.72.
Meanwhile, SNAP's PEG ratio is currently 3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SNAP's industry had an average PEG ratio of 2.17 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Snap (SNAP) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Snap (SNAP - Free Report) closed at $12.42, marking a +1.64% move from the previous day. This change outpaced the S&P 500's 0.22% gain on the day. At the same time, the Dow lost 0.13%, and the tech-heavy Nasdaq gained 0.2%.
Prior to today's trading, shares of the company behind Snapchat had lost 47.33% over the past month. This has lagged the Computer and Technology sector's loss of 8.36% and the S&P 500's loss of 8.32% in that time.
Investors will be hoping for strength from Snap as it approaches its next earnings release. On that day, Snap is projected to report earnings of -$0.01 per share, which would represent a year-over-year decline of 110%. Meanwhile, our latest consensus estimate is calling for revenue of $1.16 billion, up 17.84% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.19 per share and revenue of $5.23 billion. These totals would mark changes of -62% and +27.03%, respectively, from last year.
Any recent changes to analyst estimates for Snap should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 18.54% lower. 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 66.05 right now. This valuation marks a premium compared to its industry's average Forward P/E of 38.72.
Meanwhile, SNAP's PEG ratio is currently 3. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SNAP's industry had an average PEG ratio of 2.17 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 158, which puts it in the bottom 38% 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.