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Snap (SNAP) Gains But Lags Market: What You Should Know

Zacks Equity Research

In the latest trading session, Snap (SNAP) closed at $15.89, marking a +0.57% move from the previous day. The stock lagged the S&P 500's daily gain of 1.3%. Elsewhere, the Dow gained 1.41%, while the tech-heavy Nasdaq added 1.75%.

Coming into today, shares of the company behind Snapchat had lost 0.69% in the past month. In that same time, the Computer and Technology sector lost 0.14%, while the S&P 500 gained 0.46%.

SNAP will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.05, up 58.33% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $437.59 million, up 46.99% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.20 per share and revenue of $1.69 billion. These totals would mark changes of +57.45% and +42.85%, respectively, from last year.

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Investors might also notice 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SNAP is holding a Zacks Rank of #3 (Hold) right now.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 94, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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