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Splunk (SPLK) Outpaces Stock Market Gains: What You Should Know

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In the latest trading session, Splunk (SPLK - Free Report) closed at $135.19, marking a +1.7% move from the previous day. This change outpaced the S&P 500's 1.66% gain on the day. At the same time, the Dow added 1.39%, and the tech-heavy Nasdaq gained 1.24%.

Coming into today, shares of the maker of software that helps companies collect and analyze internal data had lost 8.37% in the past month. In that same time, the Computer and Technology sector lost 1.7%, while the S&P 500 gained 1.91%.

SPLK will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.72, down 28.57% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $492.89 million, up 13.55% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.76 per share and revenue of $2.55 billion. These totals would mark changes of -38.18% and +14.19%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for SPLK. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, 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 has moved 21.25% lower within the past month. SPLK is holding a Zacks Rank of #3 (Hold) right now.

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 181, putting it in the bottom 30% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow SPLK in the coming trading sessions, be sure to utilize Zacks.com.


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