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In the latest trading session, Snap (SNAP) closed at $75.25, marking a +1.87% move from the previous day. The stock outpaced the S&P 500’s daily gain of 1.15%.
Coming into today, shares of the company behind Snapchat had lost 0.07% in the past month. In that same time, the Computer and Technology sector lost 6.41%, while the S&P 500 lost 4.67%.
Investors will be hoping for strength from SNAP as it approaches its next earnings release. The company is expected to report EPS of -$0.01, down 200% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.09 billion, up 59.98% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.34 per share and revenue of $4.21 billion. These totals would mark changes of +666.67% and +67.96%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SNAP. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. SNAP is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, SNAP is currently trading at a Forward P/E ratio of 217.26. For comparison, its industry has an average Forward P/E of 55.56, which means SNAP is trading at a premium to the group.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 199, which puts it in the bottom 22% 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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Snap Inc. (SNAP): Free Stock Analysis Report
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