Snowflake Inc. (SNOW) ended the recent trading session at $223.84, demonstrating a +1.62% change from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.37%. Elsewhere, the Dow lost 0.74%, while the tech-heavy Nasdaq lost 0.03%.
Heading into today, shares of the company had gained 1.35% over the past month, lagging the Computer and Technology sector's gain of 4.58% and the S&P 500's gain of 2.68%.
The upcoming earnings release of Snowflake Inc. will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.26, reflecting a 44.44% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.09 billion, indicating a 24.91% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.06 per share and a revenue of $4.52 billion, signifying shifts of +27.71% and +24.57%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Snowflake Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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.
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 witnessed an unchanged state. Snowflake Inc. is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Snowflake Inc. currently has a Forward P/E ratio of 207.25. This represents a premium compared to its industry average Forward P/E of 28.48.
Meanwhile, SNOW's PEG ratio is currently 9.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. SNOW's industry had an average PEG ratio of 2.18 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 30% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Snowflake Inc. (SNOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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