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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 $17.05, marking a +0.59% move from the previous day. This change outpaced the S&P 500's 0.04% gain on the day. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the company behind Snapchat had gained 30.59% over the past month. This has outpaced the Computer and Technology sector's gain of 4.9% and the S&P 500's gain of 5.28% in that time.
The investment community will be closely monitoring the performance of Snap in its forthcoming earnings report. On that day, Snap is projected to report earnings of $0.06 per share, which would represent a year-over-year decline of 57.14%. In the meantime, our current consensus estimate forecasts the revenue to be $1.37 billion, indicating a 5.13% growth compared to the corresponding quarter of the prior year.
SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.06 per share and revenue of $4.61 billion. These results would represent year-over-year changes of -64.71% and +0.21%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Snap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.52% upward. At present, Snap boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Snap is currently trading at a Forward P/E ratio of 287.83. Its industry sports an average Forward P/E of 39.88, so one might conclude that Snap is trading at a premium comparatively.
One should further note that SNAP currently holds a PEG ratio of 20.86. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.81.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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 $17.05, marking a +0.59% move from the previous day. This change outpaced the S&P 500's 0.04% gain on the day. Elsewhere, the Dow gained 0.14%, while the tech-heavy Nasdaq lost 0.03%.
Prior to today's trading, shares of the company behind Snapchat had gained 30.59% over the past month. This has outpaced the Computer and Technology sector's gain of 4.9% and the S&P 500's gain of 5.28% in that time.
The investment community will be closely monitoring the performance of Snap in its forthcoming earnings report. On that day, Snap is projected to report earnings of $0.06 per share, which would represent a year-over-year decline of 57.14%. In the meantime, our current consensus estimate forecasts the revenue to be $1.37 billion, indicating a 5.13% growth compared to the corresponding quarter of the prior year.
SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.06 per share and revenue of $4.61 billion. These results would represent year-over-year changes of -64.71% and +0.21%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Snap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.52% upward. At present, Snap boasts a Zacks Rank of #2 (Buy).
In terms of valuation, Snap is currently trading at a Forward P/E ratio of 287.83. Its industry sports an average Forward P/E of 39.88, so one might conclude that Snap is trading at a premium comparatively.
One should further note that SNAP currently holds a PEG ratio of 20.86. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.81.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 27, putting it in the top 11% of all 250+ industries.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.