In the latest trading session, Splunk (SPLK) closed at $133.81, marking a -0.34% move from the previous day. This move lagged the S&P 500's daily gain of 0.3%. Elsewhere, the Dow gained 0.46%, while the tech-heavy Nasdaq added 0.08%.
Prior to today's trading, shares of the maker of software that helps companies collect and analyze internal data had gained 13.9% over the past month. This has outpaced the Computer and Technology sector's gain of 7.64% and the S&P 500's gain of 5.93% 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 February 28, 2019. The company is expected to report EPS of $0.76, up 105.41% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $560.66 million, up 33.58% 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 remained stagnant within the past month. SPLK currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that SPLK has a Forward P/E ratio of 81.46 right now. Its industry sports an average Forward P/E of 52.8, so we one might conclude that SPLK is trading at a premium comparatively.
Investors should also note that SPLK has a PEG ratio of 2.86 right now. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Internet - Software stocks are, on average, holding a PEG ratio of 2.86 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% 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.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Splunk Inc. (SPLK) : Free Stock Analysis Report
To read this article on Zacks.com click here.