In the latest trading session, Splunk (SPLK) closed at $134.47, marking a -0.25% move from the previous day. This change lagged the S&P 500's daily loss of 0.21%. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq lost 0.16%.
Coming into today, shares of the maker of software that helps companies collect and analyze internal data had gained 4.61% in the past month. In that same time, the Computer and Technology sector gained 3.11%, while the S&P 500 gained 2.07%.
Wall Street will be looking for positivity from SPLK as it approaches its next earnings report date. In that report, analysts expect SPLK to post earnings of -$0.15 per share. This would mark a year-over-year decline of 114.29%. Meanwhile, our latest consensus estimate is calling for revenue of $395.73 million, up 26.98% from the prior-year quarter.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.68 per share and revenue of $2.21 billion, which would represent changes of +26.32% and +22.51%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for SPLK. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. SPLK currently has a Zacks Rank of #4 (Sell).
Digging into valuation, SPLK currently has a Forward P/E ratio of 80.47. This represents a premium compared to its industry's average Forward P/E of 50.54.
Investors should also note that SPLK has a PEG ratio of 3.38 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SPLK's industry had an average PEG ratio of 3.24 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 57, putting it in the top 23% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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