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

Zacks Equity Research

Snap (SNAP) closed the most recent trading day at $14.07, moving -0.98% from the previous trading session. This move lagged the S&P 500's daily gain of 0.64%. At the same time, the Dow added 0.57%, and the tech-heavy Nasdaq gained 0.6%.

Heading into today, shares of the company behind Snapchat had lost 7.18% over the past month, lagging the Computer and Technology sector's loss of 1.05% and the S&P 500's loss of 1.87% in that time.

SNAP will be looking to display strength as it nears its next earnings release, which is expected to be October 22, 2019. 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.

SNAP's full-year Zacks Consensus Estimates are calling for earnings of -$0.20 per share and revenue of $1.70 billion. These results would represent year-over-year changes of +57.45% and +44.24%, respectively.

Investors should also note any recent changes to analyst estimates for SNAP. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

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. Within the past 30 days, our consensus EPS projection has moved 0.42% higher. SNAP is currently a Zacks Rank #2 (Buy).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 83, which puts it in the top 33% 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.

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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