Splunk (SPLK - Free Report) closed at $158.57 in the latest trading session, marking a -0.09% move from the prior day. This move was narrower than the S&P 500's daily loss of 2.05%. Elsewhere, the Dow lost 1.89%, while the tech-heavy Nasdaq lost 2.07%.
Wall Street will be looking for positivity from SPLK as it approaches its next earnings report date. This is expected to be May 21, 2020. The company is expected to report EPS of -$0.56, down 2900% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $445.69 million, up 4.91% from the year-ago period.
SPLK's full-year Zacks Consensus Estimates are calling for earnings of $0.08 per share and revenue of $2.54 billion. These results would represent year-over-year changes of -95.74% and +7.78%, respectively.
Investors might also notice 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.
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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. SPLK is currently sporting a Zacks Rank of #4 (Sell).
Investors should also note SPLK's current valuation metrics, including its Forward P/E ratio of 1938.44. This represents a premium compared to its industry's average Forward P/E of 46.69.
It is also worth noting that SPLK currently has a PEG ratio of 66.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. SPLK's industry had an average PEG ratio of 3.1 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 41, which puts it in the top 17% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.