In the latest trading session, Snowflake Inc. (SNOW) closed at $163.08, marking a +0.53% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.55%. Elsewhere, the Dow saw a downswing of 0.06%, while the tech-heavy Nasdaq appreciated by 1.24%.
The upcoming earnings release of Snowflake Inc. will be of great interest to investors. The company is predicted to post an EPS of $0.17, indicating a 51.43% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $952.46 million, indicating a 22.95% increase compared to the same quarter of the previous 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 +27.99%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Snowflake Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 0.03% higher within the past month. Currently, Snowflake Inc. is carrying a Zacks Rank of #3 (Hold).
Looking at its valuation, Snowflake Inc. is holding a Forward P/E ratio of 236.7. For comparison, its industry has an average Forward P/E of 41.55, which means Snowflake Inc. is trading at a premium to the group.
Also, we should mention that SNOW has a PEG ratio of 21.85. 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 the market closed yesterday, the Internet - Software industry was having an average PEG ratio of 3.4.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 23, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
To follow SNOW in the coming trading sessions, be sure to utilize Zacks.com.
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