Snap (SNAP) closed the most recent trading day at $8.55, moving -0.12% from the previous trading session. This change was narrower than the S&P 500’s 1.2% loss on the day. Meanwhile, the Dow lost 1.1%, and the Nasdaq, a tech-heavy index, lost 2.86%.
Heading into today, shares of the company behind Snapchat had lost 12.83% over the past month, lagging the Computer and Technology sector’s loss of 7.42% and the S&P 500’s loss of 4.77% in that time.
Wall Street will be looking for positivity from Snap as it approaches its next earnings report date. On that day, Snap is projected to report earnings of $0.10 per share, which would represent a year-over-year decline of 54.55%. Meanwhile, our latest consensus estimate is calling for revenue of $1.31 billion, up 0.8% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.15 per share and revenue of $4.61 billion. These totals would mark changes of -70% and +11.98%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Snap. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
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 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 has moved 3.3% lower. Snap is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Snap’s current valuation metrics, including its Forward P/E ratio of 57.71. For comparison, its industry has an average Forward P/E of 46.21, which means Snap is trading at a premium to the group.
It is also worth noting that SNAP currently has a PEG ratio of 28.85. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. Internet – Software stocks are, on average, holding a PEG ratio of 2.05 based on yesterday’s closing prices.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 58, putting it in the top 24% 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.
To follow SNAP in the coming trading sessions, be sure to utilize Zacks.com.
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