Snap (SNAP) closed at $6.10 in the latest trading session, marking a -6.01% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.11% for the day. Elsewhere, the Dow lost 0.09%, while the tech-heavy Nasdaq lost 1.88%.
Prior to today's trading, shares of the company behind Snapchat had gained 11.32% outpaced the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.06%.
Analysts and investors alike will be keeping a close eye on the performance of Snap in its upcoming earnings disclosure. The company's earnings report is set to go public on November 4, 2026. In that report, analysts expect Snap to post earnings of $0.16 per share. This would mark year-over-year growth of 166.67%. Simultaneously, our latest consensus estimate expects the revenue to be $1.72 billion, showing a 14.33% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.59 per share and revenue of $6.78 billion. These totals would mark changes of +78.79% and +14.35%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Snap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Snap is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Snap is presently being traded at a Forward P/E ratio of 11.06. This valuation marks a discount compared to its industry average Forward P/E of 20.8.
We can also see that SNAP currently has a PEG ratio of 0.25. 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. The average PEG ratio for the Internet - Software industry stood at 1.19 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 79, finds itself in the top 33% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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This article originally published on Zacks Investment Research (zacks.com).