Snowflake Inc. (SNOW) closed at $196.87 in the latest trading session, marking a +1.97% move from the prior day. This change outpaced the S&P 500's 0.32% gain on the day. On the other hand, the Dow registered a gain of 1.04%, and the technology-centric Nasdaq increased by 0.14%.
The stock of company has fallen by 9.27% in the past month, lagging the Computer and Technology sector's gain of 6.64% and the S&P 500's gain of 3.08%.
Market participants will be closely following the financial results of Snowflake Inc. in its upcoming release. The company plans to announce its earnings on August 27, 2025. On that day, Snowflake Inc. is projected to report earnings of $0.26 per share, which would represent year-over-year growth of 44.44%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.09 billion, indicating a 24.91% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $1.06 per share and a revenue of $4.52 billion, demonstrating changes of +27.71% and +24.57%, respectively, from the preceding year.
It is also important to note the recent changes to analyst estimates for Snowflake Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Right now, Snowflake Inc. possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Snowflake Inc. is currently being traded at a Forward P/E ratio of 181.64. This expresses a premium compared to the average Forward P/E of 28.84 of its industry.
We can also see that SNOW currently has a PEG ratio of 8.35. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.16 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 77, finds itself in the top 32% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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