Snowflake Inc. (SNOW) closed at $166.03 in the latest trading session, marking a -2.08% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 1.08%. Meanwhile, the Dow gained 1.31%, and the Nasdaq, a tech-heavy index, added 1.55%.
Prior to today's trading, shares of the company had gained 12.4% outpaced the Computer and Technology sector's gain of 8.37% and the S&P 500's gain of 3.34%.
The upcoming earnings release of Snowflake Inc. will be of great interest to investors. The company's earnings report is expected on May 27, 2026. The company is predicted to post an EPS of $0.32, indicating a 33.33% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.32 billion, up 26.85% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.81 per share and revenue of $5.91 billion. These totals would mark changes of +44.8% and +26.07%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Snowflake Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Snowflake Inc. presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Snowflake Inc. is holding a Forward P/E ratio of 93.82. This signifies a premium in comparison to the average Forward P/E of 18.13 for its industry.
It is also worth noting that SNOW currently has a PEG ratio of 4.29. 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 1.05.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 75, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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Snowflake Inc. (SNOW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).