Splunk (SPLK) closed the most recent trading day at $82.81, moving -0.16% from the previous trading session. This change was narrower than the S&P 500's 0.7% loss on the day. Meanwhile, the Dow lost 0.8%, and the Nasdaq, a tech-heavy index, lost 1.82%.
Prior to today's trading, shares of the maker of software that helps companies collect and analyze internal data had lost 12.65% over the past month. This has lagged the Computer and Technology sector's loss of 1.16% and the S&P 500's gain of 0.39% in that time.
Splunk will be looking to display strength as it nears its next earnings release. On that day, Splunk is projected to report earnings of -$0.11 per share, which would represent year-over-year growth of 65.63%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $719.02 million, up 6.67% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $2.77 per share and revenue of $3.88 billion. These totals would mark changes of +2.97% and +6.06%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Splunk. 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.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
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. Splunk is currently sporting a Zacks Rank of #3 (Hold).
Digging into valuation, Splunk currently has a Forward P/E ratio of 29.93. Its industry sports an average Forward P/E of 40.54, so we one might conclude that Splunk is trading at a discount comparatively.
We can also see that SPLK currently has a PEG ratio of 1.24. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.53 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 79, which puts it in the top 32% 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.
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