Splunk (SPLK) closed the most recent trading day at $138.56, moving +1.5% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.65%. At the same time, the Dow lost 0.42%, and the tech-heavy Nasdaq lost 0.46%.
Coming into today, shares of the maker of software that helps companies collect and analyze internal data had gained 13.68% in the past month. In that same time, the Computer and Technology sector gained 5.63%, while the S&P 500 gained 4.11%.
Investors will be hoping for strength from SPLK as it approaches its next earnings release. In that report, analysts expect SPLK to post earnings of $0.12 per share. This would mark year-over-year growth of 50%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $486.70 million, up 25.34% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.80 per share and revenue of $2.26 billion, which would represent changes of +35.34% and +25.21%, respectively, from the prior year.
Any recent changes to analyst estimates for SPLK should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. SPLK is currently a Zacks Rank #3 (Hold).
Looking at its valuation, SPLK is holding a Forward P/E ratio of 75.78. Its industry sports an average Forward P/E of 65.19, so we one might conclude that SPLK is trading at a premium comparatively.
We can also see that SPLK currently has a PEG ratio of 2.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. SPLK's industry had an average PEG ratio of 3.55 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 67, putting it in the top 27% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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