SNOW Underperforms Market Peers: Valuation Metrics and Earnings Preview Worth Monitoring

During the most recent trading day, Snowflake Inc. (SNOW) declined 1.65% to settle at $252.79, demonstrating weakness relative to broader market indices. The S&P 500 posted a more modest 0.92% pullback, while the Nasdaq technology index fell 0.84% and the Dow dropped 1.18%. Despite this daily setback, the stock has appreciated 6.76% over the trailing month—significantly outpacing both its sector, which gained 1.64%, and the wider market’s 1.48% monthly advance.

Earnings Disclosure Imminent: Consensus Expectations Point to Strong Growth

Snowflake Inc. is scheduled to report quarterly earnings on December 3, 2025, with market participants bracing for noteworthy results. The Zacks Consensus Estimate projects EPS of $0.31 per share, representing a 55% year-over-year increase. Revenue expectations are equally impressive, with consensus calling for net sales of $1.18 billion, up 25.39% from the prior-year quarter.

For the full fiscal year, analyst forecasts anticipate earnings of $1.17 per share and total revenue of $4.6 billion. These figures reflect year-over-year improvements of 40.96% and 26.9%, respectively, signaling robust operational momentum ahead of the earnings announcement.

Analyst Sentiment and Valuation Analysis

Over the past month, consensus EPS estimates have risen modestly by 0.26%, suggesting stabilization in forward expectations. The company currently carries a Zacks Rank of #3 (Hold), reflecting a balanced assessment among research professionals.

From a valuation standpoint, Snowflake Inc. trades at a Forward P/E ratio of 218.96, substantially above the Computer and Technology sector’s average of 28.7. This premium valuation is further underscored by the stock’s PEG ratio of 6.98—more than triple the Internet - Software industry average of 2.1. The elevated multiples reflect investor expectations of sustained earnings acceleration, though they also suggest limited margin for disappointment.

Industry Standing and Market Position

The Internet - Software industry, of which Snowflake is a constituent, currently ranks 66th among 250+ industry groups tracked by Zacks, placing it in the top 27% by strength. This sector positioning indicates reasonably favorable dynamics, as historical analysis demonstrates that top-50% ranked industries outperform bottom-tier groups by a 2-to-1 margin.

Investors should continue monitoring Snowflake Inc.'s earnings trajectory and any revisions to analyst estimates, as these metrics typically correlate with near-term price movements and can provide valuable signals regarding the company’s competitive position within the rapidly evolving data cloud landscape.