Snowflake Inc. (SNOW) closed the latest trading day at $182.54, indicating a +0.57% change from the previous session's end. The stock outpaced the S&P 500's daily loss of 0.76%. Meanwhile, the Dow lost 0.28%, and the Nasdaq, a tech-heavy index, lost 1.2%.
Coming into today, shares of the company had gained 11.89% in the past month. In that same time, the Computer and Technology sector gained 1.75%, while the S&P 500 gained 2.71%.
The upcoming earnings release of Snowflake Inc. will be of great interest to investors. The company's earnings report is expected on February 26, 2025. On that day, Snowflake Inc. is projected to report earnings of $0.17 per share, which would represent a year-over-year decline of 51.43%. In the meantime, our current consensus estimate forecasts the revenue to be $952.67 million, indicating a 22.97% growth compared to the corresponding quarter of the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Snowflake Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.08% increase. Snowflake Inc. is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Snowflake Inc.'s current valuation metrics, including its Forward P/E ratio of 262.58. This expresses a premium compared to the average Forward P/E of 31.48 of its industry.
We can additionally observe that SNOW currently boasts a PEG ratio of 24.23. 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. The average PEG ratio for the Internet - Software industry stood at 2.24 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 25% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
