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

·2 min read

Snowflake Inc. (SNOW) closed the most recent trading day at $332.12, moving +1.3% from the previous trading session. This change lagged the S&P 500's 1.71% gain on the day.

Heading into today, shares of the company had gained 1.16% over the past month, outpacing the Computer and Technology sector's loss of 4.5% and the S&P 500's loss of 2.25% in that time.

SNOW will be looking to display strength as it nears its next earnings release. On that day, SNOW is projected to report earnings of -$0.06 per share, which would represent year-over-year growth of 78.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $303.96 million, up 90.43% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$0.27 per share and revenue of $1.14 billion, which would represent changes of +85.16% and +93.03%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for SNOW. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SNOW is currently sporting a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 168, putting it in the bottom 34% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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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