Snap (SNAP) Gains As Market Dips: What You Should Know

Snap (SNAP) closed the most recent trading day at $13.96, moving +1.68% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.07%. Elsewhere, the Dow gained 0.27%, while the tech-heavy Nasdaq added 0.02%.

Prior to today's trading, shares of the company behind Snapchat had lost 2.69% over the past month. This has was narrower than the Computer and Technology sector's loss of 7.26% and the S&P 500's loss of 7.99% 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 -$0.01 per share. This would mark a year-over-year decline of 110%. Meanwhile, our latest consensus estimate is calling for revenue of $1.16 billion, up 17.84% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.16 per share and revenue of $5.18 billion. These totals would mark changes of -68% and +25.81%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for Snap. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 8.46% lower. Snap is currently sporting a Zacks Rank of #4 (Sell).

Valuation is also important, so investors should note that Snap has a Forward P/E ratio of 83.57 right now. This represents a premium compared to its industry's average Forward P/E of 42.41.

Meanwhile, SNAP's PEG ratio is currently 3.8. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 2.42 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 144, which puts it in the bottom 44% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.

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