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Snowflake Inc. (SNOW) Gains But Lags Market: What You Should Know

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In the latest trading session, Snowflake Inc. (SNOW) closed at $157.73, marking a +0.53% move from the previous day. The stock lagged the S&P 500's daily gain of 0.99%. Meanwhile, the Dow gained 0.51%, and the Nasdaq, a tech-heavy index, lost 0.38%.

Coming into today, shares of the company had gained 23.19% in the past month. In that same time, the Computer and Technology sector lost 11.18%, while the S&P 500 gained 7.91%.

Investors will be hoping for strength from Snowflake Inc. as it approaches its next earnings release. In that report, analysts expect Snowflake Inc. to post earnings of -$0.02 per share. This would mark year-over-year growth of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $465.64 million, up 71.07% from the prior-year quarter.

SNOW's full-year Zacks Consensus Estimates are calling for earnings of $0.14 per share and revenue of $2.01 billion. These results would represent year-over-year changes of +600% and +65.18%, respectively.

It is also important to note the recent changes to analyst estimates for Snowflake Inc.These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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. The Zacks Consensus EPS estimate has moved 0.16% higher within the past month. Snowflake Inc. is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Snowflake Inc. is holding a Forward P/E ratio of 1157.46. This valuation marks a premium compared to its industry's average Forward P/E of 45.82.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 134, putting it in the bottom 47% of all 250+ industries.

The Zacks Industry Rank includes is listed in order 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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