Is Snowflake (SNOW) a 'Buy' Ahead of Its Upcoming Earnings Announcement?

Cloud-based data provider Snowflake SNOW is set to report second-quarter earnings results on Wednesday after the closing bell. Snowflake, a Zacks Rank #3 (Hold), has handily outperformed the market year-to-date with a 27% return. With the stock pulling back in recent weeks, is Snowflake a buy heading into the release?Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Analysts are expecting SNOW to deliver quarterly earnings of 26 cents per share, which would reflect growth of 44.4% relative to the same quarter in the prior year. Estimates have remained steady over the past 60 days. Projected revenues of $1.09 billion would mark a 25% improvement versus the year-ago period.Snowflake has beaten earnings estimates in each of the past four quarters, delivering a 34.7% average earnings surprise over that timeframe. Perhaps somewhat notably, our proprietary Earnings ESP (Expected Surprise Prediction) indicator does not conclusively predict another beat for this week’s release.Snowflake’s cloud-based platform enables customers to drive meaningful business insights. Its consumption-based pricing model ensures users only pay for the resources they use. This model provides Snowflake with a recurring and high-margin revenue stream.The company’s rich partner base includes numerous tech giants such as NVIDIA and Microsoft. Snowflake has evolved into an AI leader and is showing momentum this year. As always, investors should exercise caution as stocks can be volatile surrounding earnings releases.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Snowflake Inc. (SNOW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks