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Here's Why Snowflake Inc. (SNOW) Fell More Than Broader Market
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In the latest close session, Snowflake Inc. (SNOW - Free Report) was down 5.03% at $290.68. This move lagged the S&P 500's daily loss of 0.51%. Meanwhile, the Dow experienced a rise of 0.41%, and the technology-dominated Nasdaq saw a decrease of 1.07%.
Heading into today, shares of the company had lost 10.25% over the past month, lagging the Computer and Technology sector's loss of 9.88% and the S&P 500's loss of 0.87%.
The upcoming earnings release of Snowflake Inc. will be of great interest to investors. The company is expected to report EPS of $0.6, up 71.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.65 billion, up 36.08% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.23 per share and a revenue of $6.3 billion, signifying shifts of +78.4% and +34.52%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Snowflake Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 2.74% higher. As of now, Snowflake Inc. holds a Zacks Rank of #2 (Buy).
In the context of valuation, Snowflake Inc. is at present trading with a Forward P/E ratio of 137.54. This valuation marks a premium compared to its industry average Forward P/E of 20.3.
We can additionally observe that SNOW currently boasts a PEG ratio of 4.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.27.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 38% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Here's Why Snowflake Inc. (SNOW) Fell More Than Broader Market
In the latest close session, Snowflake Inc. (SNOW - Free Report) was down 5.03% at $290.68. This move lagged the S&P 500's daily loss of 0.51%. Meanwhile, the Dow experienced a rise of 0.41%, and the technology-dominated Nasdaq saw a decrease of 1.07%.
Heading into today, shares of the company had lost 10.25% over the past month, lagging the Computer and Technology sector's loss of 9.88% and the S&P 500's loss of 0.87%.
The upcoming earnings release of Snowflake Inc. will be of great interest to investors. The company is expected to report EPS of $0.6, up 71.43% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $1.65 billion, up 36.08% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.23 per share and a revenue of $6.3 billion, signifying shifts of +78.4% and +34.52%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Snowflake Inc. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. Within the past 30 days, our consensus EPS projection has moved 2.74% higher. As of now, Snowflake Inc. holds a Zacks Rank of #2 (Buy).
In the context of valuation, Snowflake Inc. is at present trading with a Forward P/E ratio of 137.54. This valuation marks a premium compared to its industry average Forward P/E of 20.3.
We can additionally observe that SNOW currently boasts a PEG ratio of 4.57. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.27.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 38% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.