Here's Why Snap (SNAP) Fell More Than Broader Market
Snap (SNAP) closed the most recent trading day at $10.05, moving -0.2% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.19%. Elsewhere, the Dow gained 0.09%, while the tech-heavy Nasdaq lost 0.36%.
The company behind Snapchat's shares have seen an increase of 8.86% over the last month, surpassing the Computer and Technology sector's loss of 0.09% and the S&P 500's gain of 2.06%.
The investment community will be paying close attention to the earnings performance of Snap in its upcoming release. On that day, Snap is projected to report earnings of $0.05 per share, which would represent year-over-year growth of 150%. Meanwhile, our latest consensus estimate is calling for revenue of $1.35 billion, up 13.97% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.20 per share and a revenue of $5.34 billion, signifying shifts of +122.22% and +16.04%, respectively, from the last 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, there's been a 0.35% fall in the Zacks Consensus EPS estimate. 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 49.29 right now. This valuation marks a premium compared to its industry's average Forward P/E of 32.18.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 80, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Snap Inc. (SNAP) : Free Stock Analysis Report