Splunk (SPLK) ended the recent trading session at $153.42, demonstrating a -0.05% swing from the preceding day's closing price. This change lagged the S&P 500's daily gain of 0.82%. At the same time, the Dow added 0.41%, and the tech-heavy Nasdaq gained 0.95%.
Prior to today's trading, shares of the maker of software that helps companies collect and analyze internal data had gained 0.74% over the past month. This has lagged the Computer and Technology sector's gain of 10.9% and the S&P 500's gain of 5.59% in that time.
The upcoming earnings release of Splunk will be of great interest to investors. The company's earnings report is expected on February 27, 2024. The company is forecasted to report an EPS of $1.87, showcasing an 8.33% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $1.25 billion, up 0.28% from the year-ago period.
Investors might also notice recent changes to analyst estimates for Splunk. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. Within the past 30 days, our consensus EPS projection remained stagnant. Splunk presently features a Zacks Rank of #3 (Hold).
Digging into valuation, Splunk currently has a Forward P/E ratio of 31.23. This represents a discount compared to its industry's average Forward P/E of 31.54.
It's also important to note that SPLK currently trades at a PEG ratio of 1.06. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Internet - Software industry currently had an average PEG ratio of 1.68 as of yesterday's close.
The Internet - Software industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 94, positioning it in the top 38% 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.
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