SNOW Stock Underperforms Market: Key Valuation and Earnings Metrics Explained

Snowflake Inc. (SNOW) recorded a steeper decline compared to the broader indices in today’s session, closing at $252.79 with a -1.65% loss. This underperformance stands in contrast to the S&P 500’s more modest -0.92% drop, the Dow’s -1.18% slide, and the Nasdaq’s -0.84% correction. However, on a monthly basis, the picture looks brighter—SNOW has appreciated 6.76% over the past 30 days, substantially outpacing both the Computer and Technology sector’s 1.64% gain and the S&P 500’s 1.48% return.

Earnings Forecast and Consensus Estimates Paint an Optimistic Picture

The investment community is gearing up for Snowflake’s earnings announcement slated for December 3, 2025. Wall Street analysts are projecting an EPS of $0.31 for the quarter, representing a robust 55% year-over-year increase. On the revenue front, the Zacks Consensus Estimate forecasts net sales reaching $1.18 billion, a 25.39% jump from the same quarter last year.

Looking at the full-year outlook, expectations remain constructive. Analysts anticipate annual earnings of $1.17 per share alongside total revenue of $4.6 billion—corresponding to growth rates of 40.96% and 26.9% respectively compared to the prior year. Recent estimate revisions have actually moved in a positive direction, with the consensus EPS estimate climbing 0.26% over the last month, signaling improving business momentum.

Valuation Metrics Reveal Premium Pricing

From a valuation standpoint, SNOW is trading at a notably elevated level. The stock commands a Forward P/E ratio of 218.96, significantly above the Internet - Software industry average of 28.7. This premium valuation becomes even more pronounced when examining the PEG ratio—currently at 6.98 for Snowflake versus 2.1 for the broader Internet - Software segment. The PEG metric, which factors in expected earnings growth alongside traditional price-to-earnings multiples, suggests the market is pricing in substantial future expansion.

Analyst Rating and Industry Standing

Snowflake carries a Zacks Rank #3 rating (Hold), reflecting a balanced outlook among analysts. The Internet - Software industry, meanwhile, occupies the 66th position in the Zacks Industry Rank, placing it within the top 27% of all 250+ tracked industries. This ranking methodology evaluates industry strength by aggregating individual stock ratings, with historical research confirming that top-half rated industries outperform their bottom-half counterparts by approximately 2-to-1 margins.

The company’s mixed short-term performance against broader market indices, combined with its premium valuation and strong long-term growth forecasts, presents investors with a complex risk-reward scenario heading into the earnings report.