Snap (SNAP) Dips More Than Broader Markets: What You Should Know
Snap (SNAP) closed the most recent trading day at $47.71, moving -1.91% from the previous trading session.
In the latest trading session, Snap (SNAP) closed at $47.71, marking a -1.91% move from the previous day. This change lagged the S&P 500's daily loss of 0.1%. Elsewhere, the Dow gained 0.26%, while the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the company behind Snapchat had lost 0.43% over the past month. This has lagged the Computer and Technology sector's gain of 3.66% and the S&P 500's gain of 4.4% in that time.
Investors will be hoping for strength from Snap as it approaches its next earnings release. On that day, Snap is projected to report earnings of $0.09 per share, which would represent no growth from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.19 billion, up 30.83% from the year-ago period.
SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.35 per share and revenue of $4.03 billion. These results would represent year-over-year changes of +683.33% and +60.88%, respectively.
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, 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. 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, 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. Within the past 30 days, our consensus EPS projection remained stagnant. Snap is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, Snap is holding a Forward P/E ratio of 138.41. This represents a premium compared to its industry's average Forward P/E of 65.03.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 187, putting it in the bottom 27% 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.
To follow SNAP in the coming trading sessions, be sure to utilize Zacks.com.
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