The most recent trading session ended with Snowflake Inc. (SNOW) standing at $175.52, reflecting a +0.8% shift from the previouse trading day's closing. This change outpaced the S&P 500's 1.46% loss on the day. Meanwhile, the Dow experienced a rise of 0.65%, and the technology-dominated Nasdaq saw a decrease of 3.07%.
Shares of the company have appreciated by 9.75% over the course of the past month, outperforming the Computer and Technology sector's gain of 0.43% and the S&P 500's gain of 1.08%.
The investment community will be paying close attention to the earnings performance of Snowflake Inc. in its upcoming release. The company is expected to report EPS of $0.17, down 51.43% from the prior-year quarter. 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.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.69 per share and revenue of $3.59 billion, which would represent changes of -29.59% and +28%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Snowflake Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 0.08% higher. Snowflake Inc. is currently a Zacks Rank #3 (Hold).
From a valuation perspective, Snowflake Inc. is currently exchanging hands at a Forward P/E ratio of 251.89. This denotes a premium relative to the industry's average Forward P/E of 30.73.
Meanwhile, SNOW's PEG ratio is currently 23.25. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.19 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 47, placing it within the top 19% of over 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.
To follow SNOW in the coming trading sessions, be sure to utilize Zacks.com.
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