Snap (SNAP) closed at $5.38 in the latest trading session, marking a -3.76% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 1.62% for the day. Elsewhere, the Dow lost 1.87%, while the tech-heavy Nasdaq lost 1.98%.
Coming into today, shares of the company behind Snapchat had gained 0.72% in the past month. In that same time, the Computer and Technology sector lost 0.74%, while the S&P 500 lost 0.03%.
Investors will be eagerly watching for the performance of Snap in its upcoming earnings disclosure. In that report, analysts expect Snap to post earnings of $0.07 per share. This would mark year-over-year growth of 800%. In the meantime, our current consensus estimate forecasts the revenue to be $1.53 billion, indicating a 13.99% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.6 per share and a revenue of $6.7 billion, signifying shifts of +81.82% and +12.91%, respectively, from the last year.
Investors should also note any recent changes to analyst estimates for Snap. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 12.77% increase. Right now, Snap possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Snap has a Forward P/E ratio of 9.38 right now. This indicates a discount in contrast to its industry's Forward P/E of 18.47.
Investors should also note that SNAP has a PEG ratio of 0.17 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.03 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 84, putting it in the top 35% 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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Snap Inc. (SNAP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).