Splunk (SPLK) closed the most recent trading day at $123.54, moving -1.64% from the previous trading session. This change lagged the S&P 500's daily gain of 0.25%. Meanwhile, the Dow gained 0.39%, and the Nasdaq, a tech-heavy index, lost 0.09%.
Coming into today, shares of the maker of software that helps companies collect and analyze internal data had lost 9.35% in the past month. In that same time, the Computer and Technology sector lost 5.18%, while the S&P 500 lost 5.58%.
Wall Street will be looking for positivity from SPLK as it approaches its next earnings report date. This is expected to be August 21, 2019. In that report, analysts expect SPLK to post earnings of $0.12 per share. This would mark 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.
SPLK's full-year Zacks Consensus Estimates are calling for earnings of $1.80 per share and revenue of $2.26 billion. These results would represent year-over-year changes of +35.34% and +25.21%, respectively.
It is also important to note the recent changes to analyst estimates for SPLK. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. SPLK currently has a Zacks Rank of #3 (Hold).
Looking at its valuation, SPLK is holding a Forward P/E ratio of 69.72. This represents a premium compared to its industry's average Forward P/E of 53.
We can also see that SPLK currently has a PEG ratio of 2.52. 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. Internet - Software stocks are, on average, holding a PEG ratio of 2.71 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 96, putting it in the top 38% 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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