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The latest trading session saw Snap (SNAP) ending at $7.96, denoting a +1.66% adjustment from its last day's close. The stock fell short of the S&P 500, which registered a gain of 1.81% for the day. Meanwhile, the Dow gained 1.56%, and the Nasdaq, a tech-heavy index, added 2.06%.
The company behind Snapchat's shares have seen a decrease of 6.45% over the last month, surpassing the Computer and Technology sector's loss of 7.27% and falling behind the S&P 500's loss of 6.14%.
The investment community will be paying close attention to the earnings performance of Snap in its upcoming release. The company is slated to reveal its earnings on April 29, 2025. The company is predicted to post an EPS of $0.04, indicating a 33.33% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.35 billion, up 12.77% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.36 per share and a revenue of $6.01 billion, indicating changes of +24.14% and +12.13%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Snap. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 1.92% fall in the Zacks Consensus EPS estimate. Right now, Snap possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Snap is presently being traded at a Forward P/E ratio of 22.06. This indicates a discount in contrast to its industry's Forward P/E of 24.57.
One should further note that SNAP currently holds a PEG ratio of 0.72. 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. The Internet - Software industry currently had an average PEG ratio of 1.85 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 85, putting it in the top 35% of all 250+ industries.