The most recent trading session ended with Splunk (SPLK) standing at $152.65, reflecting a -0.05% shift from the previouse trading day's closing. The stock's performance was behind the S&P 500's daily gain of 0.08%. At the same time, the Dow lost 0.31%, and the tech-heavy Nasdaq gained 0.02%.
Heading into today, shares of the maker of software that helps companies collect and analyze internal data had gained 0.57% over the past month, lagging the Computer and Technology sector's gain of 2.68% and the S&P 500's gain of 3.52% in that time.
The investment community will be closely monitoring the performance of Splunk in its forthcoming earnings report. The company's upcoming EPS is projected at $1.87, signifying an 8.33% drop compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.25 billion, indicating a 0.28% upward movement from the same quarter last year.
SPLK's full-year Zacks Consensus Estimates are calling for earnings of $4.28 per share and revenue of $3.96 billion. These results would represent year-over-year changes of +59.11% and +8.52%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Splunk. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Splunk holds a Zacks Rank of #1 (Strong Buy).
Investors should also note Splunk's current valuation metrics, including its Forward P/E ratio of 35.7. This expresses a premium compared to the average Forward P/E of 35.54 of its industry.
One should further note that SPLK currently holds a PEG ratio of 1.21. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. SPLK's industry had an average PEG ratio of 1.71 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 33, which puts it in the top 14% 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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