Snowflake Inc. (SNOW) closed the latest trading day at $167.87, indicating a +0.13% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily loss of 0.64%. On the other hand, the Dow registered a loss of 0.24%, and the technology-centric Nasdaq decreased by 0.74%.
Heading into today, shares of the company had gained 28.45% over the past month, outpacing the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 0.38% in that time.
The investment community will be closely monitoring the performance of Snowflake Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on May 21, 2025. It is anticipated that the company will report an EPS of $0.22, marking a 57.14% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1 billion, up 21.13% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.15 per share and revenue of $4.44 billion. These totals would mark changes of +38.55% and +22.47%, respectively, from last year.
Investors should also note any recent changes 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 company's business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.14% lower. Snowflake Inc. is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, Snowflake Inc. is currently trading at a Forward P/E ratio of 146.06. This indicates a premium in contrast to its industry's Forward P/E of 26.27.
One should further note that SNOW currently holds a PEG ratio of 11.34. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.26.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 92, placing it within the top 38% of over 250 industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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