Snap (SNAP) closed the latest trading day at $10.27, indicating a +1.18% change from the previous session’s end. This change outpaced the S&P 500’s 0.22% gain on the day. On the other hand, the Dow registered a loss of 0.33%, and the technology-centric Nasdaq increased by 0.76%.
Prior to today’s trading, shares of the company behind Snapchat had lost 4.15% over the past month. This has lagged the Computer and Technology sector’s gain of 2.29% and the S&P 500’s gain of 1.47% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. The company’s earnings report is set to go public on October 29, 2024. In that report, analysts expect Snap to post earnings of $0.05 per share. This would mark year-over-year growth of 150%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.35 billion, indicating a 13.93% increase compared to the same quarter of the previous year.
SNAP’s full-year Zacks Consensus Estimates are calling for earnings of $0.21 per share and revenue of $5.34 billion. These results would represent year-over-year changes of +133.33% and +16.03%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Snap. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Snap boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Snap is currently trading at a Forward P/E ratio of 47.76. This expresses a premium compared to the average Forward P/E of 31.81 of its industry.
The Internet – Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 66, finds itself in the top 27% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
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