Snowflake Inc. (SNOW) Gains As Market Dips: What You Should Know
In the latest trading session, Snowflake Inc. (SNOW) closed at $138.18, marking a +0.49% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.88% for the day. Meanwhile, the Dow experienced a rise of 0.08%, and the technology-dominated Nasdaq saw a decrease of 1.95%.
Coming into today, shares of the company had gained 5.5% in the past month. In that same time, the Computer and Technology sector gained 9.48%, while the S&P 500 gained 5.11%.
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 $0.15, showcasing a 31.82% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $848.16 million, indicating a 25.84% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $0.60 per share and a revenue of $3.47 billion, indicating changes of -38.78% and +23.78%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Snowflake Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.48% decrease. Snowflake Inc. currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Snowflake Inc. currently has a Forward P/E ratio of 230.19. For comparison, its industry has an average Forward P/E of 29.49, which means Snowflake Inc. is trading at a premium to the group.
Investors should also note that SNOW has a PEG ratio of 35.47 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Internet - Software industry currently had an average PEG ratio of 1.67 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 93, positioning it in the top 37% 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 Report