Yahoo Finance Splunk (SPLK) Stock Moves -0.12%: What You Should Know
In the latest trading session, Splunk (SPLK) closed at $147.49, marking a -0.12% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 1.43% for the day. Meanwhile, the Dow experienced a drop of 0.32%, and the technology-dominated Nasdaq saw a decrease of 2.43%.
Heading into today, shares of the maker of software that helps companies collect and analyze internal data had gained 1.39% over the past month, outpacing the Computer and Technology sector's gain of 0.82% and the S&P 500's loss of 1.55% in that time.
The upcoming earnings release of Splunk will be of great interest to investors. In that report, analysts expect Splunk to post earnings of $1.12 per share. This would mark year-over-year growth of 34.94%. In the meantime, our current consensus estimate forecasts the revenue to be $1.03 billion, indicating a 10.61% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $3.78 per share and a revenue of $3.94 billion, signifying shifts of +40.52% and +7.86%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Splunk. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Splunk presently features a Zacks Rank of #2 (Buy).
With respect to valuation, Splunk is currently being traded at a Forward P/E ratio of 39.1. This signifies a premium in comparison to the average Forward P/E of 36.76 for its industry.
Investors should also note that SPLK has a PEG ratio of 1.32 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.44.
The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 72, this industry ranks in the top 29% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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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Splunk Inc. (SPLK) : Free Stock Analysis Report
