Send me real-time posts from this site at my email
Zacks

Snap (SNAP) Outpaces Stock Market Gains: What You Should Know

Snap (SNAP) closed the most recent trading day at $5.74, moving +1.77% from the previous trading session. This change outpaced the S&P 500's 0.76% gain on the day. At the same time, the Dow added 0.67%, and the tech-heavy Nasdaq gained 0.71%.

Prior to today's trading, shares of the company behind Snapchat had gained 4.25% over the past month. This has outpaced the Computer and Technology sector's loss of 0.35% and the S&P 500's gain of 0.75% in that time.

Investors will be hoping for strength from SNAP as it approaches its next earnings release, which is expected to be February 5, 2019. On that day, SNAP is projected to report earnings of -$0.08 per share, which would represent year-over-year growth of 38.46%. Meanwhile, our latest consensus estimate is calling for revenue of $376.64 million, up 31.84% from the prior-year quarter.

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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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. Within the past 30 days, our consensus EPS projection has moved 1% higher. SNAP currently has a Zacks Rank of #1 (Strong Buy).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 28, putting it in the top 11% 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.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Snap Inc. (SNAP): Get Free Report
 
To read this article on Zacks.com click here.