In the latest trading session, Splunk closed at $104.30, marking a +0.7% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 0.61%.
Heading into today, shares of the maker of software that helps companies collect and analyze internal data had gained 3.99% over the past month, outpacing the Computer and Technology sector's gain of 2.63% and lagging the S&P 500's gain of 4.86% in that time.
Wall Street will be looking for positivity from Splunk as it approaches its next earnings report date. On that day, Splunk is projected to report earnings of $0.42 per share, which would represent year-over-year growth of 366.67%. Meanwhile, our latest consensus estimate is calling for revenue of $888.03 million, up 11.18% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.13 per share and revenue of $3.9 billion. These totals would mark changes of +16.36% and +6.83%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Splunk. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 35.2% higher. Splunk is currently a Zacks Rank #3 (Hold).
In terms of valuation, Splunk is currently trading at a Forward P/E ratio of 33.11. This valuation marks a discount compared to its industry's average Forward P/E of 43.08.
We can also see that SPLK currently has a PEG ratio of 1.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.76 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Splunk (SPLK) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Splunk closed at $104.30, marking a +0.7% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.28%. Meanwhile, the Dow gained 0.08%, and the Nasdaq, a tech-heavy index, added 0.61%.
Heading into today, shares of the maker of software that helps companies collect and analyze internal data had gained 3.99% over the past month, outpacing the Computer and Technology sector's gain of 2.63% and lagging the S&P 500's gain of 4.86% in that time.
Wall Street will be looking for positivity from Splunk as it approaches its next earnings report date. On that day, Splunk is projected to report earnings of $0.42 per share, which would represent year-over-year growth of 366.67%. Meanwhile, our latest consensus estimate is calling for revenue of $888.03 million, up 11.18% from the prior-year quarter.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $3.13 per share and revenue of $3.9 billion. These totals would mark changes of +16.36% and +6.83%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Splunk. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 35.2% higher. Splunk is currently a Zacks Rank #3 (Hold).
In terms of valuation, Splunk is currently trading at a Forward P/E ratio of 33.11. This valuation marks a discount compared to its industry's average Forward P/E of 43.08.
We can also see that SPLK currently has a PEG ratio of 1.34. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Internet - Software industry currently had an average PEG ratio of 1.76 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 63, which puts it in the top 25% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.