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Splunk (SPLK) Increases Despite Market Slip: Here's What You Need to Know

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Splunk closed the most recent trading day at $155.40, moving +0.02% from the previous trading session. This change outpaced the S&P 500's 0.6% loss on the day. Elsewhere, the Dow lost 0.17%, while the tech-heavy Nasdaq lost 0.92%.

Prior to today's trading, shares of the maker of software that helps companies collect and analyze internal data had gained 1.36% over the past month. This has lagged the Computer and Technology sector's gain of 3.1% and the S&P 500's gain of 3.56% in that time.

Market participants will be closely following the financial results of Splunk in its upcoming release. The company plans to announce its earnings on February 27, 2024. In that report, analysts expect Splunk to post earnings of $1.87 per share. This would mark a year-over-year decline of 8.33%. Meanwhile, our latest consensus estimate is calling for revenue of $1.25 billion, up 0.28% from the prior-year quarter.

It is also important to note the recent changes to analyst estimates for Splunk. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Splunk possesses a Zacks Rank of #3 (Hold).

In the context of valuation, Splunk is at present trading with a Forward P/E ratio of 31.61. This indicates a discount in contrast to its industry's Forward P/E of 31.91.

It is also worth noting that SPLK currently has a PEG ratio of 1.07. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 1.87 based on yesterday's closing prices.

The Internet - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 81, this industry ranks in the top 33% of all industries, numbering over 250.

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.

Ensure to harness to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.

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