In the latest trading session, Snowflake Inc. (SNOW) closed at $315.35, marking a +2.77% move from the previous day. This change outpaced the S&P 500's 0.41% gain on the day. Meanwhile, the Dow lost 0.07%, and the Nasdaq, a tech-heavy index, added 1.11%.
Heading into today, shares of the company had lost 7.7% over the past month, lagging the Computer and Technology sector's loss of 0.92% and the S&P 500's gain of 1.46%.
The investment community will be paying close attention to the earnings performance of Snowflake Inc. in its upcoming release. The company is forecasted to report an EPS of $0.6, showcasing a 71.43% upward movement from the corresponding quarter of the prior year. 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.
Any recent changes to analyst estimates for Snowflake Inc. should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 shifted 1.48% upward. Snowflake Inc. presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Snowflake Inc. is currently being traded at a Forward P/E ratio of 137.68. This represents a premium compared to its industry average Forward P/E of 20.63.
Investors should also note that SNOW has a PEG ratio of 4.57 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Software industry stood at 1.22 at the close of the market yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 77, placing it within the top 32% of over 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Snowflake Inc. (SNOW): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).