The latest trading session saw Splunk ending at $148.01, denoting a +0.14% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 1.34% for the day. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw a decrease of 1.62%.
Coming into today, shares of the maker of software that helps companies collect and analyze internal data had gained 23.93% in the past month. In that same time, the Computer and Technology sector lost 0.34%, while the S&P 500 lost 1.57%.
Investors will be eagerly watching for the performance of Splunk in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.12, reflecting a 34.94% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.03 billion, indicating a 10.61% growth compared to the corresponding quarter of the prior year.
SPLK's full-year Zacks Consensus Estimates are calling for earnings of $3.78 per share and revenue of $3.94 billion. These results would represent year-over-year changes of +40.52% and +7.86%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Splunk. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Splunk possesses a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Splunk is presently trading at a Forward P/E ratio of 39.14. This denotes a premium relative to the industry's average Forward P/E of 38.16.
Investors should also note that SPLK has a PEG ratio of 1.32 right now. 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. The Internet - Software was holding an average PEG ratio of 1.52 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Splunk (SPLK) Gains As Market Dips: What You Should Know
The latest trading session saw Splunk ending at $148.01, denoting a +0.14% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 1.34% for the day. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw a decrease of 1.62%.
Coming into today, shares of the maker of software that helps companies collect and analyze internal data had gained 23.93% in the past month. In that same time, the Computer and Technology sector lost 0.34%, while the S&P 500 lost 1.57%.
Investors will be eagerly watching for the performance of Splunk in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.12, reflecting a 34.94% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.03 billion, indicating a 10.61% growth compared to the corresponding quarter of the prior year.
SPLK's full-year Zacks Consensus Estimates are calling for earnings of $3.78 per share and revenue of $3.94 billion. These results would represent year-over-year changes of +40.52% and +7.86%, respectively.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Splunk. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Right now, Splunk possesses a Zacks Rank of #1 (Strong Buy).
Looking at valuation, Splunk is presently trading at a Forward P/E ratio of 39.14. This denotes a premium relative to the industry's average Forward P/E of 38.16.
Investors should also note that SPLK has a PEG ratio of 1.32 right now. 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. The Internet - Software was holding an average PEG ratio of 1.52 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 78, finds itself in the top 31% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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 use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.