Snap (SNAP) closed the latest trading day at $13.45, indicating a -0.96% change from the previous session’s end. The stock’s change was less than the S&P 500’s daily loss of 0.51%. Elsewhere, the Dow saw an upswing of 0.2%, while the tech-heavy Nasdaq depreciated by 0.93%.
The company behind Snapchat’s shares have seen a decrease of 19.02% over the last month, not keeping up with the Computer and Technology sector’s loss of 2.41% and the S&P 500’s loss of 0.26%.
Market participants will be closely following the financial results of Snap in its upcoming release. The company plans to announce its earnings on August 1, 2024. It is anticipated that the company will report an EPS of $0.02, marking a 200% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.25 billion, up 16.98% from the year-ago period.
SNAP’s full-year Zacks Consensus Estimates are calling for earnings of $0.25 per share and revenue of $5.36 billion. These results would represent year-over-year changes of +177.78% and +16.3%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Snap. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company’s business and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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 last 30 days, the Zacks Consensus EPS estimate has moved 2.72% lower. Snap is holding a Zacks Rank of #3 (Hold) right now.
Valuation is also important, so investors should note that Snap has a Forward P/E ratio of 54.95 right now. For comparison, its industry has an average Forward P/E of 29.68, which means Snap is trading at a premium to the group.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 40% 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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