In the latest close session, Snowflake Inc. (SNOW) was up +2.37% at $267.49. The stock outperformed the S&P 500, which registered a daily gain of 0.81%. On the other hand, the Dow registered a gain of 0.27%, and the technology-centric Nasdaq increased by 1.3%.
Shares of the company have appreciated by 8.92% over the course of the past month, outperforming the Computer and Technology sector's loss of 1.59%, and the S&P 500's gain of 1.13%.
Analysts and investors alike will be keeping a close eye on the performance of Snowflake Inc. in its upcoming earnings disclosure. In that report, analysts expect Snowflake Inc. to post earnings of $0.45 per share. This would mark year-over-year growth of 28.57%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.47 billion, indicating a 28.39% increase compared to the same quarter of the previous year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.96 per share and a revenue of $6.07 billion, representing changes of +56.8% and +29.56%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Snowflake Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 2.11% higher within the past month. Snowflake Inc. is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Snowflake Inc. has a Forward P/E ratio of 133.48 right now. For comparison, its industry has an average Forward P/E of 19.31, which means Snowflake Inc. is trading at a premium to the group.
Also, we should mention that SNOW has a PEG ratio of 5.07. 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. The Internet - Software industry currently had an average PEG ratio of 1.05 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 90, this industry ranks in the top 37% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SNOW in the coming trading sessions, be sure to utilize Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).