Snap (SNAP) closed the most recent trading day at $5.65, moving -1.22% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 1.14%. Elsewhere, the Dow gained 0.61%, while the tech-heavy Nasdaq added 1.69%.
The company behind Snapchat's stock has climbed by 9.16% in the past month, exceeding the Computer and Technology sector's loss of 1.69% and the S&P 500's loss of 2.85%.
Market participants will be closely following the financial results of Snap in its upcoming release. The company is forecasted to report an EPS of $0.16, showcasing a 166.67% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.72 billion, up 14.33% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.59 per share and revenue of $6.78 billion, which would represent changes of +78.79% and +14.35%, respectively, from the prior year.
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, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 58.62% higher. Snap currently has a Zacks Rank of #3 (Hold).
With respect to valuation, Snap is currently being traded at a Forward P/E ratio of 9.85. This denotes a discount relative to the industry average Forward P/E of 20.36.
Meanwhile, SNAP's PEG ratio is currently 0.22. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.14.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 87, which puts it in the top 36% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).