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Snowflake Inc. (SNOW) Suffers a Larger Drop Than the General Market: Key Insights

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The most recent trading session ended with Snowflake Inc. (SNOW - Free Report) standing at $152.97, reflecting a -1.68% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.95%. At the same time, the Dow lost 1.09%, and the tech-heavy Nasdaq lost 0.84%.

Heading into today, shares of the company had lost 3.93% over the past month, lagging the Computer and Technology sector's gain of 1.67% and the S&P 500's gain of 1.78% in that time.

Market participants will be closely following the financial results of Snowflake Inc. in its upcoming release. In that report, analysts expect Snowflake Inc. to post earnings of $0.16 per share. This would mark year-over-year growth of 6.67%. Meanwhile, our latest consensus estimate is calling for revenue of $786.98 million, up 26.2% from the prior-year quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $0.85 per share and revenue of $3.38 billion, indicating changes of -13.27% and +20.29%, respectively, compared to the previous year.

Investors should also note any recent changes 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.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Snowflake Inc. presently features a Zacks Rank of #3 (Hold).

In terms of valuation, Snowflake Inc. is presently being traded at a Forward P/E ratio of 183.04. This represents a premium compared to its industry's average Forward P/E of 29.79.

One should further note that SNOW currently holds a PEG ratio of 10.7. 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 Internet - Software industry had an average PEG ratio of 1.9 as trading concluded yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 37, which puts it in the top 15% 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.

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