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Splunk (SPLK) Outpaces Stock Market Gains: What You Should Know

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Zacks Equity Research
·2 min read
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In the latest trading session, Splunk (SPLK) closed at $169.96, marking a +1.15% move from the previous day. This change outpaced the S&P 500's 0.17% gain on the day. Elsewhere, the Dow lost 0.02%, while the tech-heavy Nasdaq added 0.38%.

Heading into today, shares of the maker of software that helps companies collect and analyze internal data had lost 1.54% over the past month, lagging the Computer and Technology sector's gain of 8.01% and the S&P 500's gain of 2.33% in that time.

SPLK will be looking to display strength as it nears its next earnings release, which is expected to be March 3, 2021. In that report, analysts expect SPLK to post earnings of $0.01 per share. This would mark a year-over-year decline of 98.96%. Meanwhile, our latest consensus estimate is calling for revenue of $676.40 million, down 14.51% from the prior-year quarter.

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, 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. The Zacks Consensus EPS estimate remained stagnant within the past month. SPLK is currently sporting a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 186, putting it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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