Snap (SNAP) closed the latest trading day at $8.88, indicating a -0.56% change from the previous session's end. The stock fell short of the S&P 500, which registered a gain of 0.67% for the day. Elsewhere, the Dow gained 0.56%, while the tech-heavy Nasdaq added 0.87%.

Heading into today, shares of the company behind Snapchat had lost 6.98% over the past month, outpacing the Computer and Technology sector's loss of 7.99% and lagging the S&P 500's loss of 5.28% in that time.

The investment community will be closely monitoring the performance of Snap in its forthcoming earnings report. The company is forecasted to report an EPS of $0.04, showcasing a 33.33% upward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $1.35 billion, indicating a 12.82% upward movement from the same quarter last year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.37 per share and a revenue of $6.11 billion, indicating changes of +27.59% and +13.9%, respectively, from the former year.

It is also important to note the recent changes to analyst estimates for Snap. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Snap is currently sporting a Zacks Rank of #3 (Hold).

In the context of valuation, Snap is at present trading with a Forward P/E ratio of 24.14. This expresses a discount compared to the average Forward P/E of 26.68 of its industry.

Investors should also note that SNAP has a PEG ratio of 0.66 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 2.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 75, which puts it in the top 31% 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 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) : Free Stock Analysis Report

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

Zacks Investment Research