In the latest trading session, Splunk (SPLK - Free Report) closed at $131.77, marking a +0.37% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.16%. Meanwhile, the Dow gained 0.01%, and the Nasdaq, a tech-heavy index, lost 0.26%.
Heading into today, shares of the maker of software that helps companies collect and analyze internal data had gained 1.23% over the past month, outpacing the Computer and Technology sector's loss of 0.03% and the S&P 500's loss of 0.19% in that time.
Wall Street will be looking for positivity from SPLK as it approaches its next earnings report date. This is expected to be May 23, 2019. In that report, analysts expect SPLK to post earnings of -$0.15 per share. This would mark a year-over-year decline of 114.29%. Our most recent consensus estimate is calling for quarterly revenue of $395.73 million, up 26.98% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $1.68 per share and revenue of $2.21 billion. These totals would mark changes of +26.32% and +22.51%, respectively, from last year.
Any recent changes to analyst estimates for SPLK should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 remained stagnant. SPLK is currently sporting a Zacks Rank of #4 (Sell).
Looking at its valuation, SPLK is holding a Forward P/E ratio of 78.37. For comparison, its industry has an average Forward P/E of 52.58, which means SPLK is trading at a premium to the group.
Meanwhile, SPLK's PEG ratio is currently 3.29. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 3.32 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 73, which puts it in the top 29% 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.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.