Snowflake Inc. (SNOW) closed the most recent trading day at $245.67, moving +2.05% from the previous trading session. This change outpaced the S&P 500's 1.07% gain on the day. Elsewhere, the Dow saw an upswing of 1.12%, while the tech-heavy Nasdaq appreciated by 1.37%.
The stock of company has risen by 4.45% in the past month, leading the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 1.08%.
Market participants will be closely following the financial results 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. Simultaneously, our latest consensus estimate expects the revenue to be $1.18 billion, showing a 25.39% escalation compared to the year-ago quarter.
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 +26.9%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Snowflake Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Snowflake Inc. boasts a Zacks Rank of #3 (Hold).
In the context of valuation, Snowflake Inc. is at present trading with a Forward P/E ratio of 205.09. This signifies a premium in comparison to the average Forward P/E of 29.15 for its industry.
We can also see that SNOW currently has a PEG ratio of 6.53. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.91 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 68, putting it in the top 28% of all 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.
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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