Snowflake Inc. (SNOW) closed at $206.21 in the latest trading session, marking a -1.98% move from the prior day. The stock exceeded the S&P 500, which registered a loss of 2.06% for the day. Elsewhere, the Dow lost 1.76%, while the tech-heavy Nasdaq lost 2.39%.
The stock of company has fallen by 7.26% in the past month, lagging the Computer and Technology sector's gain of 1.71% and the S&P 500's gain of 1.63%.
The investment community will be paying close attention to the earnings performance of Snowflake Inc. in its upcoming release. It is anticipated that the company will report an EPS of $0.26, marking a 13.33% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $1.25 billion, up 26.8% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.2 per share and a revenue of $4.65 billion, representing changes of +44.58% and +28.18%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Snowflake Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. Over the past month, there's been a 0.04% fall in the Zacks Consensus EPS estimate. Snowflake Inc. presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Snowflake Inc. is presently being traded at a Forward P/E ratio of 175.11. This represents a premium compared to its industry average Forward P/E of 23.4.
We can also see that SNOW currently has a PEG ratio of 5.09. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Internet - Software stocks are, on average, holding a PEG ratio of 1.41 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 76, positioning 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.
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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