Snap (SNAP) closed at $67.65 in the latest trading session, marking a +1.96% move from the prior day. This change outpaced the S&P 500's 0.58% gain on the day.
Heading into today, shares of the company behind Snapchat had gained 9.51% over the past month, outpacing the Computer and Technology sector's gain of 7.24% and the S&P 500's gain of 2.17% in that time.
SNAP will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.02, up 77.78% from the prior-year quarter. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. SNAP currently has a Zacks Rank of #3 (Hold).
Digging into valuation, SNAP currently has a Forward P/E ratio of 293.26. For comparison, its industry has an average Forward P/E of 76.84, which means SNAP is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 207, which puts it in the bottom 19% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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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