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Snap (SNAP) ended the recent trading session at $12.55, demonstrating a -0.16% swing from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 1.11%. On the other hand, the Dow registered a loss of 0.42%, and the technology-centric Nasdaq decreased by 1.89%.
The company behind Snapchat's stock has climbed by 0.56% in the past month, falling short of the Computer and Technology sector's gain of 1.83% and outpacing the S&P 500's loss of 1.7%.
Market participants will be closely following the financial results of Snap in its upcoming release. In that report, analysts expect Snap to post earnings of $0.14 per share. This would mark year-over-year growth of 75%. At the same time, our most recent consensus estimate is projecting a revenue of $1.55 billion, reflecting a 13.99% rise from the equivalent quarter last year.
Investors should also note any recent changes to analyst estimates for Snap. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Right now, Snap possesses a Zacks Rank of #2 (Buy).
In the context of valuation, Snap is at present trading with a Forward P/E ratio of 28.57. This signifies a discount in comparison to the average Forward P/E of 29.65 for its industry.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 19, finds itself in the top 8% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.