Back to top

Image: Bigstock

Splunk (SPLK) Gains But Lags Market: What You Should Know

Read MoreHide Full Article

Splunk closed at $124.01 in the latest trading session, marking a +0.07% move from the prior day. This move lagged the S&P 500's daily gain of 0.69%. Elsewhere, the Dow gained 0.78%, while the tech-heavy Nasdaq added 0.28%.

Heading into today, shares of the maker of software that helps companies collect and analyze internal data had gained 5.95% over the past month, outpacing the Computer and Technology sector's loss of 8.19% and the S&P 500's loss of 5.29% in that time.

Investors will be hoping for strength from Splunk as it approaches its next earnings release. The company is expected to report EPS of -$0.54, down 242.11% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $773.88 million, up 3.87% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for Splunk. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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 remained stagnant within the past month. Splunk is currently sporting a Zacks Rank of #3 (Hold).

The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 152, which puts it in the bottom 41% 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.

You can find more information on all of these metrics, and much more, on

Published in