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

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In the latest trading session, Snowflake Inc. (SNOW - Free Report) closed at $216.71, marking a -1.21% move from the previous day. This change lagged the S&P 500's 0.19% gain on the day. Meanwhile, the Dow gained 0.66%, and the Nasdaq, a tech-heavy index, lost 0.03%.

The stock of company has fallen by 6.56% in the past month, lagging the Computer and Technology sector's gain of 0.02% and the S&P 500's gain of 0.54%.

The upcoming earnings release of Snowflake Inc. will be of great interest to investors. On that day, Snowflake Inc. is projected to report earnings of $0.26 per share, which would represent a year-over-year decline of 13.33%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.25 billion, indicating a 26.78% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.2 per share and a revenue of $4.65 billion, representing changes of +44.58% and +28.17%, respectively, from the prior year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Snowflake Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.21% higher within the past month. Snowflake Inc. presently features a Zacks Rank of #3 (Hold).

Investors should also note Snowflake Inc.'s current valuation metrics, including its Forward P/E ratio of 182.45. Its industry sports an average Forward P/E of 24.2, so one might conclude that Snowflake Inc. is trading at a premium comparatively.

One should further note that SNOW currently holds a PEG ratio of 5.31. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 1.54 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 63, this industry ranks in the top 26% of all industries, numbering over 250.

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.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


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