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Snap (SNAP) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest market close, Snap (SNAP - Free Report) reached $11.08, with a -1.51% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.72%. Elsewhere, the Dow saw a downswing of 1%, while the tech-heavy Nasdaq depreciated by 0.95%.
Shares of the company behind Snapchat witnessed a gain of 1.99% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.34% and the S&P 500's gain of 2.16%.
The investment community will be paying close attention to the earnings performance of Snap in its upcoming release. It is anticipated that the company will report an EPS of -$0.05, marking a 600% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.12 billion, indicating a 13.18% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $0.16 per share and a revenue of $5.22 billion, demonstrating changes of +77.78% and +13.34%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Snap. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 remained steady. Snap currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Snap has a Forward P/E ratio of 70.87 right now. For comparison, its industry has an average Forward P/E of 29.23, which means Snap is trading at a premium to the group.
Meanwhile, SNAP's PEG ratio is currently 1.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 34, this industry ranks in the top 14% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Snap (SNAP) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest market close, Snap (SNAP - Free Report) reached $11.08, with a -1.51% movement compared to the previous day. The stock's change was less than the S&P 500's daily loss of 0.72%. Elsewhere, the Dow saw a downswing of 1%, while the tech-heavy Nasdaq depreciated by 0.95%.
Shares of the company behind Snapchat witnessed a gain of 1.99% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 2.34% and the S&P 500's gain of 2.16%.
The investment community will be paying close attention to the earnings performance of Snap in its upcoming release. It is anticipated that the company will report an EPS of -$0.05, marking a 600% fall compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.12 billion, indicating a 13.18% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $0.16 per share and a revenue of $5.22 billion, demonstrating changes of +77.78% and +13.34%, respectively, from the preceding year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Snap. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. 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 remained steady. Snap currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Snap has a Forward P/E ratio of 70.87 right now. For comparison, its industry has an average Forward P/E of 29.23, which means Snap is trading at a premium to the group.
Meanwhile, SNAP's PEG ratio is currently 1.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 1.92 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 34, this industry ranks in the top 14% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.