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Snap (SNAP) Flat As Market Sinks: What You Should Know

Snap (SNAP) closed the latest trading day at $15.20, indicating no change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.02%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 0.09%.

The company behind Snapchat's stock has dropped by 9.2% in the past month, falling short of the Computer and Technology sector's gain of 8.04% and the S&P 500's gain of 4.59%.

The upcoming earnings release of Snap will be of great interest to investors. On that day, Snap is projected to report earnings of $0.02 per share, which would represent year-over-year growth of 200%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.25 billion, indicating a 16.75% increase compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.23 per share and a revenue of $5.34 billion, indicating changes of +155.56% and +15.97%, respectively, from the former year.

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Any recent changes to analyst estimates for Snap should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 4.74% increase. Snap currently has a Zacks Rank of #2 (Buy).

In the context of valuation, Snap is at present trading with a Forward P/E ratio of 65.28. Its industry sports an average Forward P/E of 28.85, so 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 58, which puts it in the top 24% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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Snap Inc. (SNAP) : Free Stock Analysis Report

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