Snap (SNAP) Dips More Than Broader Markets: What You Should Know

Zacks Equity Research
·2-min read

Snap (SNAP) closed at $62.44 in the latest trading session, marking a -1.31% move from the prior day. This move lagged the S&P 500's daily loss of 0.02%.

Heading into today, shares of the company behind Snapchat had gained 6.12% over the past month, lagging the Computer and Technology sector's gain of 7.32% and the S&P 500's gain of 6.61% in that time.

Wall Street will be looking for positivity from SNAP as it approaches its next earnings report date. This is expected to be April 22, 2021. In that report, analysts expect SNAP to post earnings of -$0.06 per share. This would mark year-over-year growth of 25%. Our most recent consensus estimate is calling for quarterly revenue of $739.2 million, up 59.83% from the year-ago period.

SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.12 per share and revenue of $3.81 billion. These results would represent year-over-year changes of +300% and +52.06%, respectively.

Investors might also notice recent changes to analyst estimates for SNAP. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. SNAP is currently sporting a Zacks Rank of #3 (Hold).

Digging into valuation, SNAP currently has a Forward P/E ratio of 527.25. This valuation marks a premium compared to its industry's average Forward P/E of 75.15.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 208, putting it in the bottom 19% 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.


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 Report
 
To read this article on Zacks.com click here.