Splunk (SPLK - Free Report) closed at $136.48 in the latest trading session, marking a -1.82% move from the prior day. This change lagged the S&P 500's daily loss of 0.58%. Meanwhile, the Dow lost 0.38%, and the Nasdaq, a tech-heavy index, lost 1.04%.
Prior to today's trading, shares of the maker of software that helps companies collect and analyze internal data had gained 8.53% over the past month. This has outpaced the Computer and Technology sector's loss of 1.99% and the S&P 500's loss of 0.88% 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%. Meanwhile, our latest consensus estimate is calling for revenue of $395.73 million, up 26.98% from the prior-year quarter.
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.
It is also important to note the recent changes to analyst estimates for SPLK. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
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.
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. 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 82.97. Its industry sports an average Forward P/E of 61.08, so we one might conclude that SPLK is trading at a premium comparatively.
Meanwhile, SPLK's PEG ratio is currently 3.48. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 3.27 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 39% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.