Snap (SNAP) Stock Sinks As Market Gains: What You Should Know
In the latest trading session, Snap (SNAP) closed at $46.41, marking a -0.94% move from the previous day. This change lagged the S&P 500's 1.64% gain on the day. Elsewhere, the Dow gained 1.08%, while the tech-heavy Nasdaq added 0.45%.
Prior to today's trading, shares of the company behind Snapchat had lost 14.99% over the past month. This has lagged the Computer and Technology sector's loss of 3.69% and the S&P 500's loss of 0.83% in that time.
Wall Street will be looking for positivity from Snap as it approaches its next earnings report date. The company is expected to report EPS of $0.09, unchanged from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.19 billion, up 30.83% from the year-ago period.
SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.35 per share and revenue of $4.03 billion. These results would represent year-over-year changes of +683.33% and +60.88%, respectively.
Any recent changes to analyst estimates for Snap should also be noted by investors. These revisions help to show the ever-changing nature 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. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 1.72% lower. Snap currently has a Zacks Rank of #3 (Hold).
Investors should also note Snap's current valuation metrics, including its Forward P/E ratio of 133.31. Its industry sports an average Forward P/E of 60.49, so we one might conclude that Snap is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 188, which puts it in the bottom 26% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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