Snowflake Inc. (SNOW) closed the most recent trading day at $210.54, moving +2.32% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.73%. Meanwhile, the Dow gained 0.18%, and the Nasdaq, a tech-heavy index, added 1.21%.
The company's stock has dropped by 7.93% in the past month, falling short of the Computer and Technology sector's gain of 2.75% and the S&P 500's gain of 0.47%.
The investment community will be paying close attention to the earnings performance of Snowflake Inc. in its upcoming release. The company is slated to reveal its earnings on August 27, 2025. The company is expected to report EPS of $0.26, up 44.44% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.09 billion, up 24.91% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.06 per share and revenue of $4.52 billion, which would represent changes of +27.71% and +24.57%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Snowflake Inc. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. At present, Snowflake Inc. boasts a Zacks Rank of #2 (Buy).
Looking at its valuation, Snowflake Inc. is holding a Forward P/E ratio of 193.6. This expresses a premium compared to the average Forward P/E of 28.48 of its industry.
We can also see that SNOW currently has a PEG ratio of 8.9. 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. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.2.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Snowflake Inc. (SNOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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