In the latest trading session, Snap (SNAP) closed at $25.94, marking a -1.78% move from the previous day. This change lagged the S&P 500’s daily loss of 0.56%. Meanwhile, the Dow lost 1.39%, and the Nasdaq, a tech-heavy index, added 0.53%.
Heading into today, shares of the company behind Snapchat had gained 24.58% over the past month, outpacing the Computer and Technology sector’s gain of 5.97% and the S&P 500’s loss of 1.79% in that time.
Wall Street will be looking for positivity from SNAP as it approaches its next earnings report date. This is expected to be July 21, 2020. The company is expected to report EPS of -$0.10, down 66.67% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $431.92 million, up 11.31% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.22 per share and revenue of $2.08 billion. These totals would mark changes of -37.5% and +20.99%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SNAP. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.68% higher within the past month. SNAP is currently a Zacks Rank #2 (Buy).
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 48, putting it in the top 19% 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.
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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