Can SNOW Stock Outperform Again? Why This Snowflake Earnings Forecast Looks Promising

Investors hunting for a stock with a proven track record of surpassing analyst predictions should take a closer look at Snowflake Inc. (SNOW), the cloud-based data platform company. The company has established itself as a consistent earnings performer, regularly delivering results that exceed Wall Street consensus. If historical patterns hold, SNOW stock could be positioned for another beat when it reports its next quarterly figures.

A Track Record of Beating the Street

What makes SNOW stock particularly interesting is its documented history of outperforming expectations. Over the most recent two quarters, Snowflake has delivered an impressive average earnings surprise of 23.76%. The latest reported quarter showcased this pattern clearly: the company posted earnings of $0.35 per share compared to the Zacks Consensus Estimate of $0.31 per share, delivering a 12.90% surprise. The quarter before that was even more dramatic—Snowflake produced $0.35 in earnings per share against expectations of $0.26, representing a 34.62% surprise.

This consistent ability to exceed forecasts isn’t random. It reflects the company’s strong operational execution and management’s capability to drive growth beyond what analysts initially project. For investors monitoring SNOW stock, this pattern provides a framework for understanding how the company tends to perform relative to expectations.

Understanding Earnings ESP: The Predictive Tool That Works

The real indicator that suggests another beat may be coming involves a metric called Earnings ESP, which stands for Expected Surprise Prediction. This tool compares the Most Accurate Estimate to the Zacks Consensus Estimate for an upcoming quarter. The Most Accurate Estimate represents what analysts have revised most recently—essentially capturing their latest thinking as the earnings release approaches.

Why does this matter? Research demonstrates that when the Most Accurate Estimate diverges significantly from the broader consensus, it often signals upcoming surprises. The logic is straightforward: analysts updating their forecasts immediately before an earnings announcement typically have the freshest information, making their revised estimates potentially more accurate than the original consensus formed months earlier.

For SNOW stock, the current Earnings ESP registers at +8.08%, indicating that recent analyst revisions have trended positive. This means forecasters have become increasingly bullish on the company’s earnings prospects heading into the report.

Zacks Rank and the Winning Formula

While Earnings ESP alone provides useful insight, its predictive power increases dramatically when combined with another metric: Zacks Rank. Snowflake currently holds a Zacks Rank #3 (Hold rating), which positions it within a favorable range.

The data is compelling: when stocks feature both a positive Earnings ESP and a Zacks Rank of #3 or better, historical research shows these positions deliver positive surprises approximately 70% of the time. Put simply—if you identified ten stocks with this combination, roughly seven would likely beat the consensus estimate.

For SNOW stock holders and prospective investors, this combination suggests the probability tilts in favor of another earnings beat in the coming report.

What Matters Before You Invest

It’s important to note that while this framework has strong predictive value, it isn’t foolproof. A negative Earnings ESP doesn’t guarantee an earnings miss—some companies beat estimates regardless of analyst sentiment shifts. Conversely, missing the consensus estimate doesn’t automatically mean a stock will decline; market reactions depend on numerous factors beyond just the numbers.

The practical takeaway for monitoring SNOW stock remains straightforward: examining Earnings ESP before quarterly earnings releases can meaningfully improve your odds of identifying outperformers. This approach works best as part of a comprehensive due diligence process rather than as a standalone signal.

For investors seeking to identify stocks with the strongest probability of positive earnings surprises, screening tools that combine Earnings ESP with Zacks Rank ratings provide a systematic method for discovery before companies report. Whether analyzing SNOW stock or other candidates, this data-driven approach has demonstrated real edge in predicting market-beating performance.