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Splunk (SPLK) Dips More Than Broader Markets: What You Should Know

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Splunk (SPLK - Free Report) closed the most recent trading day at $126.42, moving -1.4% from the previous trading session. This change lagged the S&P 500's 0.72% loss on the day.

Heading into today, shares of the maker of software that helps companies collect and analyze internal data had lost 7.28% over the past month, lagging the Computer and Technology sector's gain of 11.47% and the S&P 500's gain of 6.13% in that time.

SPLK will be looking to display strength as it nears its next earnings release. On that day, SPLK is projected to report earnings of -$0.72 per share, which would represent a year-over-year decline of 28.57%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $492.89 million, up 13.55% from the year-ago period.

SPLK's full-year Zacks Consensus Estimates are calling for earnings of -$0.80 per share and revenue of $2.55 billion. These results would represent year-over-year changes of -45.45% and +14.18%, respectively.

Investors might also notice recent changes to analyst estimates for SPLK. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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.

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 past month, the Zacks Consensus EPS estimate remained stagnant. SPLK currently has a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 191, putting it in the bottom 25% 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.

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