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Why Snowflake Inc. (SNOW) Dipped More Than Broader Market Today

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Snowflake Inc. (SNOW - Free Report) closed at $150.25 in the latest trading session, marking a -1.13% move from the prior day. This change lagged the S&P 500's 0.13% loss on the day. At the same time, the Dow lost 0.03%, and the tech-heavy Nasdaq lost 0.12%.

The company's shares have seen a decrease of 3.51% over the last month, surpassing the Computer and Technology sector's loss of 5.08% and the S&P 500's loss of 5.53%.

Investors will be eagerly watching for the performance of Snowflake Inc. in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.15, marking a 36.36% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $710.54 million, indicating a 27.56% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $0.65 per share and a revenue of $2.75 billion, signifying shifts of +160% and +32.92%, respectively, from the last year.

Investors should also take note of any recent adjustments to analyst estimates for Snowflake Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming 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, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Snowflake Inc. currently has a Zacks Rank of #3 (Hold).

In terms of valuation, Snowflake Inc. is currently trading at a Forward P/E ratio of 233.19. This valuation marks a premium compared to its industry's average Forward P/E of 36.54.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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