Snowflake Inc. (SNOW) closed the latest trading day at $160.35, indicating a +0.87% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 0.58%. On the other hand, the Dow registered a gain of 0.75%, and the technology-centric Nasdaq increased by 0.55%.

The company's stock has climbed by 8.76% in the past month, exceeding the Computer and Technology sector's gain of 0.6% and the S&P 500's loss of 0.84%.

The investment community will be paying close attention to the earnings performance of Snowflake Inc. in its upcoming release. The company is expected to report EPS of $0.22, up 57.14% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1 billion, showing a 21.13% escalation compared to the year-ago quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.15 per share and a revenue of $4.44 billion, signifying shifts of +38.55% and +22.47%, respectively, from the last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Snowflake Inc. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate has moved 0.14% lower within the past month. Snowflake Inc. is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Snowflake Inc. has a Forward P/E ratio of 138.48 right now. This indicates a premium in contrast to its industry's Forward P/E of 25.98.

It is also worth noting that SNOW currently has a PEG ratio of 10.75. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Internet - Software industry stood at 2.2 at the close of the market yesterday.

The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 143, finds itself in the bottom 43% echelons 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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