Splunk (SPLK - Free Report) closed at $119.96 in the latest trading session, marking a -0.42% move from the prior day. This move lagged the S&P 500's daily loss of 0.3%. Meanwhile, the Dow lost 0.52%, and the Nasdaq, a tech-heavy index, lost 0.14%.
Prior to today's trading, shares of the maker of software that helps companies collect and analyze internal data had gained 4.22% over the past month. This has outpaced the Computer and Technology sector's gain of 3.75% and the S&P 500's gain of 2.46% in that time.
Investors will be hoping for strength from SPLK as it approaches its next earnings release. The company is expected to report EPS of $0.09, down 76.32% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $603.71 million, up 25.52% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.85 per share and revenue of $2.31 billion, which would represent changes of +39.1% and +28.14%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SPLK. 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. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 6.02% lower within the past month. SPLK is currently a Zacks Rank #3 (Hold).
Valuation is also important, so investors should note that SPLK has a Forward P/E ratio of 65.12 right now. This represents a premium compared to its industry's average Forward P/E of 61.42.
We can also see that SPLK currently has a PEG ratio of 2.08. 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 2.89 based on yesterday's closing prices.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 71, putting it in the top 28% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.