In the latest trading session, Snap (SNAP) closed at $59.31, marking a -1.97% move from the previous day. This change lagged the S&P 500’s 0.75% loss on the day.
Coming into today, shares of the company behind Snapchat had lost 2.87% in the past month. In that same time, the Computer and Technology sector gained 3.03%, while the S&P 500 gained 2.74%.
SNAP will be looking to display strength as it nears its next earnings release, which is expected to be July 22, 2021. On that day, SNAP is projected to report earnings of -$0.02 per share, which would represent year-over-year growth of 77.78%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $838.21 million, up 84.56% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.23 per share and revenue of $3.9 billion. These totals would mark changes of +483.33% and +55.77%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for SNAP. These recent revisions tend to reflect the evolving nature of short-term business trends. 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. 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 remained stagnant. SNAP currently has a Zacks Rank of #3 (Hold).
Investors should also note SNAP’s current valuation metrics, including its Forward P/E ratio of 267.4. This valuation marks a premium compared to its industry’s average Forward P/E of 66.83.
The Internet – Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 197, which puts it in the bottom 23% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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