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Snowflake Inc. (SNOW) Suffers a Larger Drop Than the General Market: Key Insights

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Snowflake Inc. (SNOW - Free Report) closed at $215.60 in the latest trading session, marking a -1.44% move from the prior day. This change lagged the S&P 500's daily loss of 0.32%. Elsewhere, the Dow saw a downswing of 0.71%, while the tech-heavy Nasdaq depreciated by 0.2%.

The company's shares have seen an increase of 15.67% over the last month, surpassing the Computer and Technology sector's gain of 9.33% and the S&P 500's gain of 4.59%.

Market participants will be closely following the financial results of Snowflake Inc. in its upcoming release. The company plans to announce its earnings on February 28, 2024. The company is forecasted to report an EPS of $0.17, showcasing a 21.43% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $759.86 million, indicating a 29.01% increase compared to the same quarter of the previous year.

Investors should also pay attention to any latest changes in analyst estimates for Snowflake Inc. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. At present, Snowflake Inc. boasts a Zacks Rank of #4 (Sell).

Looking at its valuation, Snowflake Inc. is holding a Forward P/E ratio of 196.95. This represents a premium compared to its industry's average Forward P/E of 31.21.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 80, this industry ranks in the top 32% of all industries, numbering over 250.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. 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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