In the latest trading session, Snap (SNAP) closed at $10.49, marking a +0.29% move from the previous day. The stock’s performance was behind the S&P 500’s daily gain of 0.4%. At the same time, the Dow added 0.09%, and the tech-heavy Nasdaq gained 0.63%.
Heading into today, shares of the company behind Snapchat had gained 3.87% over the past month, lagging the Computer and Technology sector’s gain of 4.88% and outpacing the S&P 500’s gain of 3.76% in that time.
Market participants will be closely following the financial results of Snap in its upcoming release. The company plans to announce its earnings on October 29, 2024. On that day, Snap is projected to report earnings of $0.05 per share, which would represent year-over-year growth of 150%. Meanwhile, our latest consensus estimate is calling for revenue of $1.35 billion, up 13.98% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.21 per share and a revenue of $5.35 billion, signifying shifts of +133.33% and +16.08%, respectively, from the last 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. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate has moved 1.7% higher within the past month. Currently, Snap is carrying a Zacks Rank of #4 (Sell).
Looking at valuation, Snap is presently trading at a Forward P/E ratio of 49.22. This valuation marks a premium compared to its industry’s average Forward P/E of 32.25.
The Internet – Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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