Snap (SNAP) closed at $4.53 in the latest trading session, marking a +1.57% move from the prior day. This change outpaced the S&P 500's 0.1% loss on the day. At the same time, the Dow added 0.35%, and the tech-heavy Nasdaq lost 0.43%.
The company behind Snapchat's shares have seen a decrease of 22.44% over the last month, not keeping up with the Computer and Technology sector's loss of 2.15% and the S&P 500's loss of 1.34%.
The upcoming earnings release of Snap will be of great interest to investors. The company is forecasted to report an EPS of $0.07, showcasing a 800% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.53 billion, showing a 13.99% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.6 per share and revenue of $6.7 billion. These totals would mark changes of +81.82% and +12.91%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Snap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 10.64% rise in the Zacks Consensus EPS estimate. Snap is currently a Zacks Rank #3 (Hold).
In terms of valuation, Snap is currently trading at a Forward P/E ratio of 7.5. This signifies a discount in comparison to the average Forward P/E of 17.83 for its industry.
It's also important to note that SNAP currently trades at a PEG ratio of 0.14. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 0.99 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 90, positioning it in the top 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Snap Inc. (SNAP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).