Snowflake Inc. (SNOW) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
·2 min read

Snowflake Inc. (SNOW) closed the most recent trading day at $268.26, moving -0.41% from the previous trading session. This change lagged the S&P 500's daily gain of 0.42%.

Heading into today, shares of the company had gained 11.4% over the past month, outpacing the Computer and Technology sector's gain of 2.29% and the S&P 500's gain of 2.64% in that time.

Investors will be hoping for strength from SNOW as it approaches its next earnings release.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.57 per share and revenue of $1.11 billion. These totals would mark changes of +68.68% and +87.67%, respectively, from last year.

It is also important to note the recent changes to analyst estimates for SNOW. These revisions help to show the ever-changing nature of near-term business trends. 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.

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 remained stagnant within the past month. SNOW is holding a Zacks Rank of #3 (Hold) right now.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 189, putting it in the bottom 26% 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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