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Snap (SNAP) Gains As Market Dips: What You Should Know

Snap (SNAP) closed the most recent trading day at $10.51, moving +0.96% from the previous trading session. This change outpaced the S&P 500's 0.2% loss on the day. Meanwhile, the Dow lost 0.59%, and the Nasdaq, a tech-heavy index, lost 1.54%.

Prior to today's trading, shares of the company behind Snapchat had gained 26.49% over the past month. This has outpaced the Computer and Technology sector's gain of 12.17% and the S&P 500's gain of 4.14% in that time.

Snap will be looking to display strength as it nears its next earnings release. On that day, Snap is projected to report earnings of -$0.05 per share, which would represent a year-over-year decline of 150%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.05 billion, down 5.79% from the year-ago period.

SNAP's full-year Zacks Consensus Estimates are calling for earnings of $0.04 per share and revenue of $4.51 billion. These results would represent year-over-year changes of -76.47% and -2.03%, respectively.


It is also important to note the recent changes to analyst estimates for Snap. These revisions typically reflect the latest short-term business trends, which can change frequently. 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 0.98% higher within the past month. Snap is holding a Zacks Rank of #3 (Hold) right now.

Valuation is also important, so investors should note that Snap has a Forward P/E ratio of 240.23 right now. This valuation marks a premium compared to its industry's average Forward P/E of 42.4.

Also, we should mention that SNAP has a PEG ratio of 17.41. 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 was holding an average PEG ratio of 1.72 at yesterday's closing price.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 118, which puts it in the top 47% 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.

You can find more information on all of these metrics, and much more, on

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