Snap (SNAP) closed at $11.30 in the latest trading session, marking a +0.71% move from the prior day. This change outpaced the S&P 500’s 0.09% loss on the day. Meanwhile, the Dow experienced a rise of 0.04%, and the technology-dominated Nasdaq saw a decrease of 0.1%.
Heading into today, shares of the company behind Snapchat had gained 5.95% over the past month, outpacing the Computer and Technology sector’s gain of 3.04% and the S&P 500’s loss of 0.29% in that time.
The investment community will be closely monitoring the performance of Snap in its forthcoming earnings report. On that day, Snap is projected to report earnings of $0.14 per share, which would represent year-over-year growth of 75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.55 billion, up 13.99% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.25 per share and a revenue of $5.36 billion, representing changes of +177.78% and +16.28%, respectively, from the prior year.
Any recent changes to analyst estimates for Snap should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.32% upward. Snap currently has a Zacks Rank of #2 (Buy).
Looking at valuation, Snap is presently trading at a Forward P/E ratio of 44.68. This signifies a premium in comparison to the average Forward P/E of 32.61 for its industry.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 31, putting it in the top 13% 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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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