Snowflake Inc. (SNOW) closed the most recent trading day at $225.79, moving +1.94% from the previous trading session. The stock's change was more than the S&P 500's daily loss of 0.79%. Elsewhere, the Dow lost 0.94%, while the tech-heavy Nasdaq lost 0.92%.
Heading into today, shares of the company had gained 5.05% over the past month, lagging the Computer and Technology sector's gain of 7.88% and the S&P 500's gain of 5.22%.
Market participants will be closely following the financial results of Snowflake Inc. in its upcoming release. The company's upcoming EPS is projected at $0.26, signifying a 44.44% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $1.09 billion, reflecting a 24.91% rise from the equivalent quarter last year.
SNOW's full-year Zacks Consensus Estimates are calling for earnings of $1.06 per share and revenue of $4.52 billion. These results would represent year-over-year changes of +27.71% and +24.57%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Snowflake Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% upward. Currently, Snowflake Inc. is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Snowflake Inc. is currently trading at a Forward P/E ratio of 208.39. For comparison, its industry has an average Forward P/E of 29.69, which means Snowflake Inc. is trading at a premium to the group.
It's also important to note that SNOW currently trades at a PEG ratio of 12.36. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.24.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 44, finds itself in the top 18% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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