In the latest trading session, Snap (SNAP) closed at $4.84, marking a +1.89% move from the previous day. Elsewhere, the Dow gained 1.14%, while the tech-heavy Nasdaq lost 0.8%.
Shares of the company behind Snapchat witnessed a loss of 17.1% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 5.47%, and the S&P 500's loss of 1.43%.
The upcoming earnings release of Snap will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.07, reflecting a 800% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.53 billion, indicating a 13.99% increase compared to the same quarter of the previous year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.6 per share and revenue of $6.7 billion, indicating changes of +81.82% and +12.9%, respectively, compared to the previous year.
Investors might also notice recent changes to analyst estimates for Snap. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the 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 has moved 13.82% lower. Currently, Snap is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Snap is currently exchanging hands at a Forward P/E ratio of 7.97. This signifies a discount in comparison to the average Forward P/E of 19.52 for its industry.
Investors should also note that SNAP has a PEG ratio of 0.15 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 1.09 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250.
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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Snap Inc. (SNAP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).