In the latest trading session, Snap (SNAP) closed at $74.62, marking a +0.66% move from the previous day. This change outpaced the S&P 500’s 0.46% loss on the day.
Prior to today’s trading, shares of the company behind Snapchat had lost 3.14% over the past month. This has lagged the Computer and Technology sector’s gain of 3.42% and the S&P 500’s gain of 1.93% in that time.
Investors will be hoping for strength from SNAP as it approaches its next earnings release. In that report, analysts expect SNAP to post earnings of $0.06 per share. This would mark year-over-year growth of 500%. Meanwhile, our latest consensus estimate is calling for revenue of $1.09 billion, up 59.98% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $0.34 per share and revenue of $4.21 billion, which would represent changes of +666.67% and +67.96%, 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 such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SNAP currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that SNAP has a Forward P/E ratio of 218.03 right now. This represents a premium compared to its industry’s average Forward P/E of 60.28.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 204, putting it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Snap Inc. (SNAP): Free Stock Analysis Report
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