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Why Snowflake Inc. (SNOW) Outpaced the Stock Market Today
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Snowflake Inc. (SNOW - Free Report) closed the most recent trading day at $334.95, moving +2.93% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 0.83%.
The company's stock has dropped by 3.13% in the past month, exceeding the Computer and Technology sector's loss of 7.7% and lagging the S&P 500's loss of 1.21%.
The investment community will be closely monitoring the performance of Snowflake Inc. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.6, reflecting a 71.43% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.65 billion, up 36.08% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.23 per share and revenue of $6.3 billion. These totals would mark changes of +78.4% and +34.52%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Snowflake Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.48% higher. Currently, Snowflake Inc. is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Snowflake Inc. currently has a Forward P/E ratio of 146.03. This valuation marks a premium compared to its industry average Forward P/E of 20.75.
Also, we should mention that SNOW has a PEG ratio of 4.85. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.31.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Why Snowflake Inc. (SNOW) Outpaced the Stock Market Today
Snowflake Inc. (SNOW - Free Report) closed the most recent trading day at $334.95, moving +2.93% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq added 0.83%.
The company's stock has dropped by 3.13% in the past month, exceeding the Computer and Technology sector's loss of 7.7% and lagging the S&P 500's loss of 1.21%.
The investment community will be closely monitoring the performance of Snowflake Inc. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.6, reflecting a 71.43% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.65 billion, up 36.08% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.23 per share and revenue of $6.3 billion. These totals would mark changes of +78.4% and +34.52%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for Snowflake Inc. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.48% higher. Currently, Snowflake Inc. is carrying a Zacks Rank of #2 (Buy).
Digging into valuation, Snowflake Inc. currently has a Forward P/E ratio of 146.03. This valuation marks a premium compared to its industry average Forward P/E of 20.75.
Also, we should mention that SNOW has a PEG ratio of 4.85. 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. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.31.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 82, putting it in the top 34% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.