Splunk (SPLK) closed the most recent trading day at $156.51, moving +0.57% from the previous trading session. This change outpaced the S&P 500's 0.38% loss on the day. At the same time, the Dow lost 0.46%, and the tech-heavy Nasdaq gained 0.17%.
Prior to today's trading, shares of the maker of software that helps companies collect and analyze internal data had gained 0.03% over the past month. This has outpaced the Computer and Technology sector's loss of 5.23% and the S&P 500's loss of 4.88% in that time.
Wall Street will be looking for positivity from SPLK as it approaches its next earnings report date. This is expected to be March 4, 2020. The company is expected to report EPS of $0.96, up 3.23% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $783.94 million, up 26.02% from the year-ago period.
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. 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 has moved 8.35% lower within the past month. SPLK is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, SPLK is currently trading at a Forward P/E ratio of 67.7. This represents a premium compared to its industry's average Forward P/E of 49.9.
Meanwhile, SPLK's PEG ratio is currently 2.17. 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 2.41 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 112, putting it in the top 44% 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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