Splunk (SPLK) Gains But Lags Market: What You Should Know

·2-min read

Splunk (SPLK) closed at $141.75 in the latest trading session, marking a +0.48% move from the prior day. This move lagged the S&P 500's daily gain of 1.02%.

Prior to today's trading, shares of the maker of software that helps companies collect and analyze internal data had gained 0.96% over the past month. This has lagged the Computer and Technology sector's gain of 1.36% and the S&P 500's gain of 3.01% in that time.

SPLK will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of -$0.69, down 109.09% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $562.23 million, up 14.35% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of -$1.48 per share and revenue of $2.52 billion. These totals would mark changes of -169.09% and +12.85%, respectively, from last year.

Any recent changes to analyst estimates for SPLK should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. SPLK is currently sporting a Zacks Rank of #4 (Sell).

The Internet - Software industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 200, putting it in the bottom 22% 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.


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