In the latest market close, Snap (SNAP) reached $16.61, with a +0.24% movement compared to the previous day. The stock’s performance was ahead of the S&P 500’s daily loss of 0.41%. On the other hand, the Dow registered a loss of 0.12%, and the technology-centric Nasdaq decreased by 0.71%.
Coming into today, shares of the company behind Snapchat had gained 9.23% in the past month. In that same time, the Computer and Technology sector gained 6.52%, while the S&P 500 gained 3.53%.
Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. On that day, Snap is projected to report earnings of $0.02 per share, which would represent year-over-year growth of 200%. In the meantime, our current consensus estimate forecasts the revenue to be $1.25 billion, indicating a 16.94% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.24 per share and revenue of $5.35 billion, which would represent changes of +166.67% and +16.25%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Snap. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the company’s business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 1.53% higher. As of now, Snap holds a Zacks Rank of #2 (Buy).
Looking at its valuation, Snap is holding a Forward P/E ratio of 69.04. For comparison, its industry has an average Forward P/E of 30.12, 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 bearing a Zacks Industry Rank of 81, finds itself in the top 33% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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