We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Snap (SNAP) Dips More Than Broader Markets: What You Should Know
Read MoreHide Full Article
In the latest trading session, Snap (SNAP - Free Report) closed at $12.93, marking a -1.37% move from the previous day. This change lagged the S&P 500's 0.68% loss on the day. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, lost 3.19%.
Prior to today's trading, shares of the company behind Snapchat had gained 28.15% over the past month. This has outpaced the Computer and Technology sector's gain of 3.15% and the S&P 500's gain of 3.58% in that time.
Wall Street will be looking for positivity from Snap as it approaches its next earnings report date. This is expected to be July 25, 2023. On that day, Snap is projected to report earnings of -$0.04 per share, which would represent a year-over-year decline of 100%. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, down 5.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.04 per share and revenue of $4.51 billion, which would represent changes of -76.47% and -1.99%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Snap. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.15% lower. Snap is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Snap is holding a Forward P/E ratio of 310.5. This valuation marks a premium compared to its industry's average Forward P/E of 44.29.
Also, we should mention that SNAP has a PEG ratio of 22.5. 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. The Internet - Software industry currently had an average PEG ratio of 1.83 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 77, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SNAP in the coming trading sessions, be sure to utilize Zacks.com.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Snap (SNAP) Dips More Than Broader Markets: What You Should Know
In the latest trading session, Snap (SNAP - Free Report) closed at $12.93, marking a -1.37% move from the previous day. This change lagged the S&P 500's 0.68% loss on the day. Meanwhile, the Dow gained 0.47%, and the Nasdaq, a tech-heavy index, lost 3.19%.
Prior to today's trading, shares of the company behind Snapchat had gained 28.15% over the past month. This has outpaced the Computer and Technology sector's gain of 3.15% and the S&P 500's gain of 3.58% in that time.
Wall Street will be looking for positivity from Snap as it approaches its next earnings report date. This is expected to be July 25, 2023. On that day, Snap is projected to report earnings of -$0.04 per share, which would represent a year-over-year decline of 100%. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, down 5.65% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.04 per share and revenue of $4.51 billion, which would represent changes of -76.47% and -1.99%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Snap. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.15% lower. Snap is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Snap is holding a Forward P/E ratio of 310.5. This valuation marks a premium compared to its industry's average Forward P/E of 44.29.
Also, we should mention that SNAP has a PEG ratio of 22.5. 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. The Internet - Software industry currently had an average PEG ratio of 1.83 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 77, which puts it in the top 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SNAP in the coming trading sessions, be sure to utilize Zacks.com.