Yahoo Finance Splunk (SPLK) Ascends But Remains Behind Market: Some Facts to Note
Splunk (SPLK) closed at $146.62 in the latest trading session, marking a +0.1% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.18% for the day. Elsewhere, the Dow gained 0.1%, while the tech-heavy Nasdaq added 0.3%.
Heading into today, shares of the maker of software that helps companies collect and analyze internal data had lost 0.15% over the past month, lagging the Computer and Technology sector's gain of 3.65% and the S&P 500's gain of 3.08% in that time.
Investors will be eagerly watching for the performance of Splunk in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 28, 2023. The company's upcoming EPS is projected at $1.12, signifying a 34.94% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $1.03 billion, indicating a 10.61% upward movement from the same quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.78 per share and a revenue of $3.94 billion, indicating changes of +40.52% and +7.86%, respectively, from the former year.
Investors might also notice recent changes to analyst estimates for Splunk. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. Right now, Splunk possesses a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Splunk has a Forward P/E ratio of 38.79 right now. This denotes a premium relative to the industry's average Forward P/E of 35.01.
Meanwhile, SPLK's PEG ratio is currently 1.31. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Internet - Software industry held an average PEG ratio of 1.55.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Splunk Inc. (SPLK) : Free Stock Analysis Report
