Snap (SNAP) closed the most recent trading day at $5.65, moving -1.22% from the previous trading session. The stock’s change was less than the S&P 500’s daily gain of 1.14%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.69%.
The company behind Snapchat’s stock has climbed by 9.16% in the past month, exceeding the Computer and Technology sector’s loss of 1.69% and the S&P 500’s loss of 2.85%.
Market participants will be closely following the financial results of Snap in its upcoming release. The company is forecasted to report an EPS of $0.16, showcasing a 166.67% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.72 billion, up 14.33% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.59 per share and revenue of $6.78 billion, which would represent changes of +78.79% and +14.35%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Snap. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts’ favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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. Within the past 30 days, our consensus EPS projection has moved 58.62% higher. Snap currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Snap is currently being traded at a Forward P/E ratio of 9.85. This denotes a discount relative to the industry average Forward P/E of 20.36.
Meanwhile, SNAP’s PEG ratio is currently 0.22. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. As of the close of trade yesterday, the Internet – Software industry held an average PEG ratio of 1.14.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 36% of all 250+ industries.
