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Snowflake Inc. (SNOW) Ascends While Market Falls: Some Facts to Note

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Snowflake Inc. (SNOW - Free Report) ended the recent trading session at $125.46, demonstrating a +1.59% swing from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.29% for the day. At the same time, the Dow lost 0.86%, and the tech-heavy Nasdaq lost 0.09%.

The company's stock has climbed by 0.28% in the past month, falling short of the Computer and Technology sector's gain of 3.2% and the S&P 500's gain of 3.3%.

The investment community will be closely monitoring the performance of Snowflake Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on November 20, 2024. The company is expected to report EPS of $0.15, down 40% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $898.77 million, up 22.42% from the year-ago period.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $0.58 per share and a revenue of $3.53 billion, representing changes of -40.82% and +25.78%, respectively, from the prior 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. 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 past month, the Zacks Consensus EPS estimate remained stagnant. Snowflake Inc. is holding a Zacks Rank of #4 (Sell) right now.

Investors should also note Snowflake Inc.'s current valuation metrics, including its Forward P/E ratio of 212.41. This represents a premium compared to its industry's average Forward P/E of 32.89.

It is also worth noting that SNOW currently has a PEG ratio of 31.31. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.52 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 52, which puts it in the top 21% of all 250+ industries.

The Zacks Industry Rank is ordered 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.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.


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