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Snowflake Inc. (SNOW) Dips More Than Broader Markets: What You Should Know

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Snowflake Inc. (SNOW - Free Report) closed the most recent trading day at $157.84, moving -0.98% from the previous trading session. This move lagged the S&P 500's daily loss of 0.89%. At the same time, the Dow lost 0.63%, and the tech-heavy Nasdaq lost 0.25%.

Prior to today's trading, shares of the company had gained 4.61% over the past month. This has lagged the Computer and Technology sector's gain of 10.6% and the S&P 500's gain of 11.42% in that time.

Snowflake Inc. will be looking to display strength as it nears its next earnings release, which is expected to be November 30, 2022. In that report, analysts expect Snowflake Inc. to post earnings of $0.03 per share. This would mark a year-over-year decline of 25%. Meanwhile, our latest consensus estimate is calling for revenue of $535.81 million, up 60.21% from the prior-year quarter.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.14 per share and revenue of $2.04 billion. These totals would mark changes of +600% and +67.13%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Snowflake Inc.These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. The Zacks Consensus EPS estimate remained stagnant within the past month. Snowflake Inc. is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, Snowflake Inc. currently has a Forward P/E ratio of 1148.9. For comparison, its industry has an average Forward P/E of 46.66, which means Snowflake Inc. is trading at a premium to the group.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 76, putting it in the top 31% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.


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