Snap (SNAP – Free Report) closed at $41.71 in the latest trading session, marking a +0.85% move from the prior day. This change outpaced the S&P 500’s 0.14% loss on the day. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.02%.
Coming into today, shares of the company behind Snapchat had lost 18.62% in the past month. In that same time, the Computer and Technology sector lost 5.82%, while the S&P 500 lost 0.13%.
Wall Street will be looking for positivity from Snap as it approaches its next earnings report date. The company is expected to report EPS of $0.09, unchanged from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.19 billion, up 30.83% from the prior-year quarter.
Investors should also note any recent changes to analyst estimates for Snap. Recent revisions tend to reflect the latest near-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. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection remained stagnant. Snap currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, Snap is holding a Forward P/E ratio of 76.19. This valuation marks a premium compared to its industry’s average Forward P/E of 56.59.
The Internet – Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 172, putting it in the bottom 33% 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.
To follow SNAP in the coming trading sessions, be sure to utilize Zacks.com.