Splunk closed at $153.36 in the latest trading session, marking a +0.04% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.07%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.36%.
Heading into today, shares of the maker of software that helps companies collect and analyze internal data had gained 0.82% over the past month, lagging the Computer and Technology sector's gain of 5.93% and the S&P 500's gain of 3.05% in that time.
Market participants will be closely following the financial results of Splunk in its upcoming release. The company is forecasted to report an EPS of $1.87, showcasing an 8.33% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.25 billion, showing a 0.28% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.28 per share and a revenue of $3.96 billion, representing changes of +59.11% and +8.52%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Splunk. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Splunk possesses a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Splunk is currently exchanging hands at a Forward P/E ratio of 35.83. This denotes a premium relative to the industry's average Forward P/E of 34.06.
We can additionally observe that SPLK currently boasts a PEG ratio of 1.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.76.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Why the Market Dipped But Splunk (SPLK) Gained Today
Splunk closed at $153.36 in the latest trading session, marking a +0.04% move from the prior day. The stock's change was more than the S&P 500's daily loss of 0.07%. On the other hand, the Dow registered a gain of 0.16%, and the technology-centric Nasdaq decreased by 0.36%.
Heading into today, shares of the maker of software that helps companies collect and analyze internal data had gained 0.82% over the past month, lagging the Computer and Technology sector's gain of 5.93% and the S&P 500's gain of 3.05% in that time.
Market participants will be closely following the financial results of Splunk in its upcoming release. The company is forecasted to report an EPS of $1.87, showcasing an 8.33% downward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.25 billion, showing a 0.28% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $4.28 per share and a revenue of $3.96 billion, representing changes of +59.11% and +8.52%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Splunk. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Splunk possesses a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, Splunk is currently exchanging hands at a Forward P/E ratio of 35.83. This denotes a premium relative to the industry's average Forward P/E of 34.06.
We can additionally observe that SPLK currently boasts a PEG ratio of 1.21. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Internet - Software industry had an average PEG ratio of 1.76.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 53, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.