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Snowflake Inc. (SNOW) Gains But Lags Market: What You Should Know

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Snowflake Inc. (SNOW - Free Report) closed the most recent trading day at $145.81, moving +0.9% from the previous trading session. The stock lagged the S&P 500's daily gain of 2.02%. At the same time, the Dow added 1.34%, and the tech-heavy Nasdaq gained 0.28%.

Coming into today, shares of the company had lost 24.89% in the past month. In that same time, the Computer and Technology sector lost 10.33%, while the S&P 500 lost 8.64%.

Snowflake Inc. will be looking to display strength as it nears its next earnings release, which is expected to be May 25, 2022. The company is expected to report EPS of -$0.01, up 95.83% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $409.62 million, up 78.94% from the prior-year quarter.

SNOW's full-year Zacks Consensus Estimates are calling for earnings of $0.12 per share and revenue of $2 billion. These results would represent year-over-year changes of +500% and +64.39%, respectively.

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. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Snowflake Inc. is currently a Zacks Rank #3 (Hold).

Investors should also note Snowflake Inc.'s current valuation metrics, including its Forward P/E ratio of 1171.7. This valuation marks a premium compared to its industry's average Forward P/E of 41.37.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 169, which puts it in the bottom 33% 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.

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