Snowflake Inc. (SNOW) Stock Sinks As Market Gains: What You Should Know
Snowflake Inc. (SNOW) closed the most recent trading day at $154, moving -0.58% from the previous trading session. This change lagged the S&P 500's 0.36% gain on the day. At the same time, the Dow added 0.23%, and the tech-heavy Nasdaq lost 0.1%.
Prior to today's trading, shares of the company had gained 18.01% over the past month. This has outpaced the Computer and Technology sector's loss of 6.98% and the S&P 500's loss of 6.59% in that time.
Wall Street will be looking for positivity from Snowflake Inc. as it approaches its next earnings report date. On that day, Snowflake Inc. is projected to report earnings of -$0.02 per share, which would represent 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 $2.02 billion. These results would represent year-over-year changes of +600% and +65.3%, respectively.
Investors should also note any recent changes to analyst estimates for Snowflake Inc.Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant within the past month. Snowflake Inc. currently has a Zacks Rank of #3 (Hold).
Investors should also note Snowflake Inc.'s current valuation metrics, including its Forward P/E ratio of 1142.7. For comparison, its industry has an average Forward P/E of 45.23, which means Snowflake Inc. is trading at a premium to the group.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 155, putting it in the bottom 39% 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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