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Splunk (SPLK) Stock Jumps 5.4%: Will It Continue to Soar?
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Splunk shares rallied 5.4% in the last trading session to close at $74.04. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 22.7% loss over the past four weeks.
The stock price rally was buoyed by the news that activist investor Starboard Value LP has nearly 5% ownership stake in the company and would aim to further increase it in the long run. Widely regarded as one of the industry's eminent activist investors, Starboard boasts huge operational expertise and is likely to benefit the company in the long term.
Splunk’s software offerings enable users to have deep insight of their data on a real-time basis, thereby making the operational decision-making process faster. The company’s software has a broad range of applications, including security analytics, business analytics and IT operations. Splunk is benefiting from healthy customer engagement, evident from the consistently high net retention and competitive win rates alongside solid momentum with large orders overall.
This maker of software that helps companies collect and analyze internal data is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of +162.2%. Revenues are expected to be $845.93 million, up 27.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Splunk, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SPLK going forward to see if this recent jump can turn into more strength down the road.
Splunk is a member of the Zacks Internet - Software industry. One other stock in the same industry, Hello Group Inc. Sponsored ADR (MOMO - Free Report) , finished the last trading session 0.4% higher at $4.88. MOMO has returned 6.1% over the past month.
Hello Group Inc. Sponsored ADR's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.28. Compared to the company's year-ago EPS, this represents a change of -33.3%. Hello Group Inc. Sponsored ADR currently boasts a Zacks Rank of #1 (Strong Buy).
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Splunk (SPLK) Stock Jumps 5.4%: Will It Continue to Soar?
Splunk shares rallied 5.4% in the last trading session to close at $74.04. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 22.7% loss over the past four weeks.
The stock price rally was buoyed by the news that activist investor Starboard Value LP has nearly 5% ownership stake in the company and would aim to further increase it in the long run. Widely regarded as one of the industry's eminent activist investors, Starboard boasts huge operational expertise and is likely to benefit the company in the long term.
Splunk’s software offerings enable users to have deep insight of their data on a real-time basis, thereby making the operational decision-making process faster. The company’s software has a broad range of applications, including security analytics, business analytics and IT operations. Splunk is benefiting from healthy customer engagement, evident from the consistently high net retention and competitive win rates alongside solid momentum with large orders overall.
This maker of software that helps companies collect and analyze internal data is expected to post quarterly earnings of $0.23 per share in its upcoming report, which represents a year-over-year change of +162.2%. Revenues are expected to be $845.93 million, up 27.3% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Splunk, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on SPLK going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Splunk is a member of the Zacks Internet - Software industry. One other stock in the same industry, Hello Group Inc. Sponsored ADR (MOMO - Free Report) , finished the last trading session 0.4% higher at $4.88. MOMO has returned 6.1% over the past month.
Hello Group Inc. Sponsored ADR's consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.28. Compared to the company's year-ago EPS, this represents a change of -33.3%. Hello Group Inc. Sponsored ADR currently boasts a Zacks Rank of #1 (Strong Buy).