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

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Snowflake Inc. (SNOW - Free Report) closed the most recent trading day at $216.00, moving +1.53% from the previous trading session. This change outpaced the S&P 500's 0.01% loss on the day. Elsewhere, the Dow gained 0.03%, while the tech-heavy Nasdaq added 0.17%.

The stock of company has fallen by 4.19% in the past month, lagging the Computer and Technology sector's gain of 1.46% and the S&P 500's gain of 0.78%.

Market participants will be closely following the financial results of Snowflake Inc. in its upcoming release. The company's earnings per share (EPS) are projected to be $0.27, reflecting a 10% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.25 billion, indicating a 26.85% growth compared to the corresponding quarter of the prior year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.2 per share and a revenue of $4.65 billion, signifying shifts of +44.58% and +28.2%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Snowflake Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. 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 benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.11% higher. Snowflake Inc. is currently sporting a Zacks Rank of #3 (Hold).

Looking at valuation, Snowflake Inc. is presently trading at a Forward P/E ratio of 176.6. For comparison, its industry has an average Forward P/E of 23.28, which means Snowflake Inc. is trading at a premium to the group.

It is also worth noting that SNOW currently has a PEG ratio of 5.14. 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 average PEG ratio for the Internet - Software industry stood at 1.37 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 77, positioning it in the top 32% of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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