In the latest close session, Snowflake Inc. (SNOW) was down 2.83% at $192.63. The stock's performance was behind the S&P 500's daily loss of 0.59%. Meanwhile, the Dow gained 0.02%, and the Nasdaq, a tech-heavy index, lost 1.46%.
Heading into today, shares of the company had lost 8.07% over the past month, lagging the Computer and Technology sector's gain of 3.91% and the S&P 500's gain of 2.49%.
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 forecasted to report an EPS of $0.26, showcasing a 44.44% upward movement from the corresponding quarter of the prior year. 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.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.06 per share and a revenue of $4.52 billion, indicating changes of +27.71% and +24.57%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Snowflake Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain 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).
From a valuation perspective, Snowflake Inc. is currently exchanging hands at a Forward P/E ratio of 186.52. For comparison, its industry has an average Forward P/E of 29.47, which means Snowflake Inc. is trading at a premium to the group.
It is also worth noting that SNOW currently has a PEG ratio of 8.58. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 2.31.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 32% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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
Snowflake Inc. (SNOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
