Snowflake Inc. (SNOW) ended the recent trading session at $271.87, demonstrating a -1.47% change from the preceding day's closing price. This change lagged the S&P 500's 0.38% gain on the day. Elsewhere, the Dow gained 0.29%, while the tech-heavy Nasdaq added 0.62%.
Coming into today, shares of the company had gained 15.78% in the past month. In that same time, the Computer and Technology sector lost 0.53%, while the S&P 500 gained 1.61%.
The investment community will be closely monitoring the performance of Snowflake Inc. in its forthcoming earnings report. The company is expected to report EPS of $0.45, up 28.57% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $1.47 billion, indicating a 28.39% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.96 per share and a revenue of $6.07 billion, signifying shifts of +56.8% and +29.56%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Snowflake Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 past month, the Zacks Consensus EPS estimate has moved 2.11% higher. Currently, Snowflake Inc. is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Snowflake Inc. is presently trading at a Forward P/E ratio of 140.95. This signifies a premium in comparison to the average Forward P/E of 19.89 for its industry.
Investors should also note that SNOW has a PEG ratio of 5.35 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. SNOW's industry had an average PEG ratio of 1.06 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 92, 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).