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Snowflake Inc. (SNOW) Declines More Than Market: Some Information for Investors

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Snowflake Inc. (SNOW - Free Report) ended the recent trading session at $184.96, demonstrating a -0.86% swing from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.43%. Elsewhere, the Dow lost 1.01%, while the tech-heavy Nasdaq lost 0.47%.

The the stock of company has risen by 5.11% in the past month, leading the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.6%.

The investment community will be paying close attention to the earnings performance of Snowflake Inc. in its upcoming release. The company is slated to reveal its earnings on February 26, 2025. The company is expected to report EPS of $0.17, down 51.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $952.67 million, up 22.97% from the prior-year quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Snowflake Inc. Such recent modifications usually signify the changing landscape 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.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, there's been no change in the Zacks Consensus EPS estimate. As of now, Snowflake Inc. holds a Zacks Rank of #3 (Hold).

Looking at its valuation, Snowflake Inc. is holding a Forward P/E ratio of 186.81. This denotes a premium relative to the industry's average Forward P/E of 30.14.

Investors should also note that SNOW has a PEG ratio of 17.27 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 2.23.

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 34% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow SNOW in the coming trading sessions, be sure to utilize Zacks.com.


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