The upcoming earnings release of Snap will be of great interest to investors. The company is forecasted to report an EPS of $0, showcasing a 100% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.34 billion, up 7.96% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.25 per share and a revenue of $5.82 billion, signifying shifts of -13.79% and +8.59%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Snap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we’ve crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.93% downward. Snap is holding a Zacks Rank of #3 (Hold) right now.
Looking at valuation, Snap is presently trading at a Forward P/E ratio of 33.88. This valuation marks a premium compared to its industry average Forward P/E of 28.14.
We can additionally observe that SNAP currently boasts a PEG ratio of 0.96. 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 2.1 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% of all 250+ industries.
