Snowflake Inc. (SNOW) Outpaces Stock Market Gains: What You Should Know
Snowflake Inc. (SNOW) closed the most recent trading day at $160.77, moving +1.71% from the previous trading session. This change outpaced the S&P 500's 1.29% gain on the day. Meanwhile, the Dow gained 0.78%, and the Nasdaq, a tech-heavy index, lost 4.94%.
Prior to today's trading, shares of the company had gained 17.58% over the past month. This has outpaced the Computer and Technology sector's gain of 14.37% and the S&P 500's gain of 5.64% in that time.
Investors will be hoping for strength from Snowflake Inc. as it approaches its next earnings release, which is expected to be March 1, 2023. On that day, Snowflake Inc. is projected to report earnings of $0.03 per share, which would represent a year-over-year decline of 75%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $570.96 million, up 48.78% from the year-ago period.
Any recent changes to analyst estimates for Snowflake Inc. should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate has moved 1.94% higher within the past month. Snowflake Inc. currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Snowflake Inc. has a Forward P/E ratio of 344.31 right now. For comparison, its industry has an average Forward P/E of 43.12, 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 industry currently has a Zacks Industry Rank of 77, which puts it in the top 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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