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

Snap (SNAP) closed the most recent trading day at $8.16, moving -3.32% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.49%. At the same time, the Dow added 0.38%, and the tech-heavy Nasdaq gained 0.72%. The company behind Snapchat's shares have seen an increase of 19.72% over the last month, surpassing the Computer and Technology sector's gain of 6.81% and the S&P 500's gain of 2.99%.The upcoming earnings release of Snap will be of great interest to investors. The company is predicted to post an EPS of $0.06, indicating a 25% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.49 billion, indicating a 8.82% growth compared to the corresponding quarter of the prior year. Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.25 per share and revenue of $5.88 billion, indicating changes of -13.79% and +9.68%, respectively, compared to the previous year. Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Snap. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 3.32% lower. Snap is currently sporting a Zacks Rank of #3 (Hold). Looking at valuation, Snap is presently trading at a Forward P/E ratio of 33.76. This signifies a premium in comparison to the average Forward P/E of 32.6 for its industry. Also, we should mention that SNAP has a PEG ratio of 0.92. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 2.33 at the close of the market yesterday. The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 64, placing it within the top 26% of over 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. You can find more information on all of these metrics, and much more, on Zacks.com. Higher. Faster. Sooner. Buy These Stocks NowA small number of stocks are primed for a breakout, and you have a chance to get in before they take off.At any given time, there are only 220 Zacks Rank #1 Strong Buys. On average, this list more than doubles the S&P 500. We’ve combed through the latest Strong Buys and selected 7 compelling companies likely to jump sooner and climb higher than any other stock you could buy this month.You'll learn everything you need to know about these exciting trades in our brand-new Special Report, 7 Best Stocks for the Next 30 Days.Download the report free now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snap Inc. (SNAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks