Snap (SNAP) Rises Higher Than Market: Key Facts

In the latest close session, Snap (SNAP) was up +2.98% at $4.49. This move outpaced the S&P 500's daily gain of 0.54%. On the other hand, the Dow registered a gain of 0.66%, and the technology-centric Nasdaq increased by 0.77%.

Heading into today, shares of the company behind Snapchat had lost 12.27% over the past month, lagging the Computer and Technology sector's loss of 5% and the S&P 500's loss of 4.71%.

Market participants will be closely following the financial results of Snap in its upcoming release. The company's earnings per share (EPS) are projected to be $0.08, reflecting a 100% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.52 billion, up 11.78% from the year-ago period.

For the full year, the Zacks Consensus Estimates project earnings of $0.5 per share and a revenue of $6.76 billion, demonstrating changes of +51.52% and +13.89%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Snap. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate has moved 1.74% higher within the past month. Snap presently features a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Snap has a Forward P/E ratio of 8.74 right now. This expresses a discount compared to the average Forward P/E of 18.85 of its industry.

Investors should also note that SNAP has a PEG ratio of 0.25 right now. 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. Internet - Software stocks are, on average, holding a PEG ratio of 1.05 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 159, which puts it in the bottom 36% of all 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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