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Snowflake Inc. (SNOW) Stock Dips While Market Gains: Key Facts

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Snowflake Inc. (SNOW - Free Report) closed at $235.09 in the latest trading session, marking a -2.27% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.01% for the day. At the same time, the Dow added 0.51%, and the tech-heavy Nasdaq lost 0.28%.

The stock of company has risen by 8.4% in the past month, lagging the Computer and Technology sector's gain of 10.49% and overreaching the S&P 500's gain of 4.83%.

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 $0.31, marking a 55% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.18 billion, indicating a 25.27% increase compared to the same quarter of the previous year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.17 per share and revenue of $4.6 billion, indicating changes of +40.96% and +26.72%, respectively, compared to the previous year.

Any recent changes to analyst estimates for Snowflake Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.85% higher within the past month. Right now, Snowflake Inc. possesses a Zacks Rank of #3 (Hold).

Looking at valuation, Snowflake Inc. is presently trading at a Forward P/E ratio of 204.92. Its industry sports an average Forward P/E of 29.87, so one might conclude that Snowflake Inc. is trading at a premium comparatively.

It's also important to note that SNOW currently trades at a PEG ratio of 6.53. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. SNOW's industry had an average PEG ratio of 2.25 as of yesterday's close.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 26% echelons of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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