In the latest trading session, Snap (SNAP) closed at $10.22, marking a -0.58% move from the previous day. Meanwhile, the Dow lost 0.15%, and the Nasdaq, a tech-heavy index, lost 2.33%.
Coming into today, shares of the company behind Snapchat had gained 17.75% in the past month. In that same time, the Computer and Technology sector gained 9.73%, while the S&P 500 gained 1.03%.
Snap will be looking to display strength as it nears its next earnings release. In that report, analysts expect Snap to post earnings of -$0.05 per share. This would mark a year-over-year decline of 150%. Our most recent consensus estimate is calling for quarterly revenue of $1.05 billion, down 5.79% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.04 per share and revenue of $4.51 billion. These totals would mark changes of -76.47% and -2.03%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Snap. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.33% higher. Snap is holding a Zacks Rank of #3 (Hold) right now.
Digging into valuation, Snap currently has a Forward P/E ratio of 237.23. Its industry sports an average Forward P/E of 39.79, so we one might conclude that Snap is trading at a premium comparatively.
We can also see that SNAP currently has a PEG ratio of 17.19. 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 1.65 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 108, which puts it in the top 43% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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