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The most recent trading session ended with Snowflake Inc. (SNOW) standing at $144.55, reflecting a -0.28% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.79% gain on the day. On the other hand, the Dow registered a gain of 0.78%, and the technology-centric Nasdaq increased by 0.64%.
Heading into today, shares of the company had lost 7.14% over the past month, lagging the Computer and Technology sector's loss of 4.81% and the S&P 500's loss of 3.56% in that time.
Market participants will be closely following the financial results of Snowflake Inc. in its upcoming release. The company is predicted to post an EPS of $0.22, indicating a 57.14% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1 billion, indicating a 21.12% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.14 per share and revenue of $4.46 billion, which would represent changes of +37.35% and +22.95%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Snowflake Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.38% higher. As of now, Snowflake Inc. holds a Zacks Rank of #3 (Hold).
Investors should also note Snowflake Inc.'s current valuation metrics, including its Forward P/E ratio of 127.16. This expresses a premium compared to the average Forward P/E of 25.02 of its industry.
One should further note that SNOW currently holds a PEG ratio of 9.77. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.85.