Splunk closed at $146.80 in the latest trading session, marking a -0.14% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.08%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.22%.
The maker of software that helps companies collect and analyze internal data's stock has dropped by 0.64% in the past month, falling short of the Computer and Technology sector's gain of 2.9% and the S&P 500's gain of 1.42%.
Analysts and investors alike will be keeping a close eye on the performance of Splunk in its upcoming earnings disclosure. The company's earnings report is set to go public on November 28, 2023. The company is expected to report EPS of $1.12, up 34.94% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.03 billion, showing a 10.61% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.78 per share and a revenue of $3.94 billion, indicating changes of +40.52% and +7.86%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Splunk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Splunk currently has a Zacks Rank of #3 (Hold).
Investors should also note Splunk's current valuation metrics, including its Forward P/E ratio of 38.92. Its industry sports an average Forward P/E of 33.32, so one might conclude that Splunk is trading at a premium comparatively.
Investors should also note that SPLK has a PEG ratio of 1.32 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.45.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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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Why Splunk (SPLK) Dipped More Than Broader Market Today
Splunk closed at $146.80 in the latest trading session, marking a -0.14% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.08%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.22%.
The maker of software that helps companies collect and analyze internal data's stock has dropped by 0.64% in the past month, falling short of the Computer and Technology sector's gain of 2.9% and the S&P 500's gain of 1.42%.
Analysts and investors alike will be keeping a close eye on the performance of Splunk in its upcoming earnings disclosure. The company's earnings report is set to go public on November 28, 2023. The company is expected to report EPS of $1.12, up 34.94% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.03 billion, showing a 10.61% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.78 per share and a revenue of $3.94 billion, indicating changes of +40.52% and +7.86%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for Splunk. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Splunk currently has a Zacks Rank of #3 (Hold).
Investors should also note Splunk's current valuation metrics, including its Forward P/E ratio of 38.92. Its industry sports an average Forward P/E of 33.32, so one might conclude that Splunk is trading at a premium comparatively.
Investors should also note that SPLK has a PEG ratio of 1.32 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.45.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these 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.