Snap (SNAP) closed at $35.88 in the latest trading session, marking a -0.99% move from the prior day. This change was narrower than the S&P 500’s daily loss of 1.23%. Meanwhile, the Dow lost 1.29%, and the Nasdaq, a tech-heavy index, lost 0.34%.
Coming into today, shares of the company behind Snapchat had lost 1.71% in the past month. In that same time, the Computer and Technology sector gained 4.45%, while the S&P 500 gained 5.04%.
Snap will be looking to display strength as it nears its next earnings release. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.07 billion, up 38.46% from the year-ago period.
SNAP’s full-year Zacks Consensus Estimates are calling for earnings of $0.51 per share and revenue of $5.39 billion. These results would represent year-over-year changes of +2% and +30.96%, respectively.
Any recent changes to analyst estimates for Snap should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Snap is currently a Zacks Rank #3 (Hold).
In terms of valuation, Snap is currently trading at a Forward P/E ratio of 71.21. For comparison, its industry has an average Forward P/E of 49.93, which means Snap is trading at a premium to the group.
It is also worth noting that SNAP currently has a PEG ratio of 1.66. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company’s expected earnings growth rate into account. SNAP’s industry had an average PEG ratio of 3.02 as of yesterday’s close.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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