Splunk (SPLK) Gains As Market Dips: What You Should Know
In the latest trading session, Splunk (SPLK) closed at $130.41, marking a +0.07% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.48%. Meanwhile, the Dow lost 0.43%, and the Nasdaq, a tech-heavy index, lost 0.78%.
Coming into today, shares of the maker of software that helps companies collect and analyze internal data had gained 19.01% in the past month. In that same time, the Computer and Technology sector gained 8%, while the S&P 500 gained 5.97%.
Investors will be hoping for strength from SPLK as it approaches its next earnings release. On that day, SPLK is projected to report earnings of $0.12 per share, which would represent year-over-year growth of 50%. Meanwhile, our latest consensus estimate is calling for revenue of $486.70 million, up 25.34% from the prior-year quarter.
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.
Investors should also note any recent changes to analyst estimates for SPLK. These revisions typically reflect the latest short-term business trends, which can change frequently. 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. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SPLK currently has a Zacks Rank of #3 (Hold).
In terms of valuation, SPLK is currently trading at a Forward P/E ratio of 72.34. This valuation marks a premium compared to its industry's average Forward P/E of 61.32.
We can also see that SPLK currently has a PEG ratio of 2.61. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 3.02 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 84, putting it in the top 33% 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.
To follow SPLK in the coming trading sessions, be sure to utilize Zacks.com.
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