Group 1: Company Performance - Snap's stock closed at $7.05, down 3.16% from the previous session, underperforming the S&P 500's gain of 0.3% [1] - The upcoming earnings disclosure is projected to show earnings of $0.06 per share, reflecting a year-over-year decline of 25%, with quarterly revenue expected to be $1.49 billion, an increase of 8.82% from the previous year [2] - For the annual period, earnings are anticipated to be $0.26 per share and revenue at $5.88 billion, indicating a decline of 10.34% in earnings and an increase of 9.68% in revenue compared to last year [3] Group 2: Analyst Estimates and Valuation - Recent modifications to analyst estimates for Snap are crucial as they reflect short-term business trends, with positive revisions indicating analysts' confidence in performance [4] - The Zacks Rank system, which assesses estimate changes, currently ranks Snap at 3 (Hold), with a consensus EPS projection that has decreased by 1.54% in the past 30 days [6] - Snap's Forward P/E ratio stands at 28.41, which is lower than the industry average of 31.58, and its PEG ratio is 0.77 compared to the industry average of 2.34 [6][7] Group 3: Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 76, placing it in the top 31% of over 250 industries [7] - The strength of individual industry groups is measured by the Zacks Industry Rank, with top-rated industries outperforming the bottom half by a factor of 2 to 1 [8]
Snap (SNAP) Stock Slides as Market Rises: Facts to Know Before You Trade