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Snowflake Inc. (SNOW) closed the latest trading day at $160.35, indicating a +0.87% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.58%. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 0.55%.
The company's stock has climbed by 8.76% in the past month, exceeding the Computer and Technology sector's gain of 0.6% and the S&P 500's loss of 0.84%.
The investment community will be paying close attention to the earnings performance of Snowflake Inc. in its upcoming release. The company is expected to report EPS of $0.22, up 57.14% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1 billion, showing a 21.13% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.15 per share and a revenue of $4.44 billion, signifying shifts of +38.55% and +22.47%, respectively, from the last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Snowflake Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.14% lower 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 138.48 right now. This indicates a premium in contrast to its industry's Forward P/E of 25.98.
It is also worth noting that SNOW currently has a PEG ratio of 10.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.2 at the close of the market yesterday.