Snowflake Inc. (SNOW) closed at $143.36 in the latest trading session, marking a +1.57% move from the prior day. This move outpaced the S&P 500's daily gain of 1.36%. Meanwhile, the Dow gained 1.18%, and the Nasdaq, a tech-heavy index, added 0.06%.
Prior to today's trading, shares of the company had lost 19.24% over the past month. This has lagged the Computer and Technology sector's gain of 2.84% and the S&P 500's gain of 5.44% in that time.
Investors will be hoping for strength from Snowflake Inc. as it approaches its next earnings release, which is expected to be November 30, 2022. The company is expected to report EPS of $0.03, down 25% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $535.81 million, up 60.21% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $0.14 per share and revenue of $2.04 billion. These totals would mark changes of +600% and +67.13%, respectively, from last year.
Any recent changes to analyst estimates for Snowflake Inc. should also be noted by investors. 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.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Snowflake Inc. is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Snowflake Inc.'s current valuation metrics, including its Forward P/E ratio of 1017.22. Its industry sports an average Forward P/E of 43.97, so we one might conclude that Snowflake Inc. is trading at a premium comparatively.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within 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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