Snowflake Inc. (SNOW) ended the recent trading session at $242.17, demonstrating a -3.39% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 2.71%. At the same time, the Dow lost 1.9%, and the tech-heavy Nasdaq lost 3.56%.
Shares of the company witnessed a gain of 11.64% over the previous month, beating the performance of the Computer and Technology sector with its gain of 6.22%, and the S&P 500's gain of 3.5%.
The investment community will be paying close attention to the earnings performance of Snowflake Inc. in its upcoming release. The company is forecasted to report an EPS of $0.31, showcasing a 55% upward movement from the corresponding quarter of the prior year. At the same time, our most recent consensus estimate is projecting a revenue of $1.18 billion, reflecting a 25.27% rise from the equivalent quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.17 per share and revenue of $4.6 billion. These totals would mark changes of +40.96% and +26.72%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Snowflake Inc. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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, the Zacks Consensus EPS estimate has moved 0.85% higher. Snowflake Inc. currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Snowflake Inc. currently has a Forward P/E ratio of 213.55. Its industry sports an average Forward P/E of 30.41, so one might conclude that Snowflake Inc. is trading at a premium comparatively.
Also, we should mention that SNOW has a PEG ratio of 6.8. 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. The Internet - Software was holding an average PEG ratio of 2.12 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 83, this industry ranks in the top 34% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Snowflake Inc. (SNOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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