In the latest trading session, Splunk (SPLK - Free Report) closed at $155.78, marking a +0.82% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.29%. Meanwhile, the Dow lost 0.46%, and the Nasdaq, a tech-heavy index, lost 0.27%.
Heading into today, shares of the maker of software that helps companies collect and analyze internal data had gained 7.57% over the past month, outpacing the Computer and Technology sector's gain of 7.47% and the S&P 500's gain of 4.56% in that time.
SPLK will be looking to display strength as it nears its next earnings release. On that day, SPLK is projected to report earnings of $0.95 per share, which would represent year-over-year growth of 2.15%. Our most recent consensus estimate is calling for quarterly revenue of $783.24 million, up 25.9% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.87 per share and revenue of $2.35 billion, which would represent changes of +40.6% and +30.39%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for SPLK. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 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 remained stagnant within the past month. SPLK is currently a Zacks Rank #3 (Hold).
Looking at its valuation, SPLK is holding a Forward P/E ratio of 82.6. Its industry sports an average Forward P/E of 56.14, so we one might conclude that SPLK is trading at a premium comparatively.
It is also worth noting that SPLK currently has a PEG ratio of 2.64. 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. SPLK's industry had an average PEG ratio of 2.54 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 106, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.