Splunk(US:SPLK) Zacks Investment Research·2024-01-27 00:21Company Overview - Splunk (SPLK) closed at $153.36, with a slight increase of +0.04% from the previous day, outperforming the S&P 500's loss of 0.07% [1] - Over the past month, Splunk's shares have gained 0.82%, which is below the Computer and Technology sector's gain of 5.93% and the S&P 500's gain of 3.05% [1] Financial Performance - Splunk is expected to report an EPS of $1.87, reflecting an 8.33% decrease from the same quarter last year [1] - Revenue is projected to be $1.25 billion, indicating a 0.28% increase compared to the year-ago quarter [1] - For the entire fiscal year, earnings are projected at $4.28 per share and revenue at $3.96 billion, representing increases of +59.11% and +8.52% respectively from the prior year [2] Analyst Insights - Recent revisions to analyst forecasts for Splunk are important as they reflect short-term business trends, with positive changes indicating a favorable outlook on the company's health and profitability [2] - The Zacks Rank system rates Splunk as 1 (Strong Buy), which has historically outperformed with an average annual return of +25% since 1988 [3] Valuation Metrics - Splunk's Forward P/E ratio is currently at 35.83, which is a premium compared to the industry's average Forward P/E of 34.06 [3] - The company has a PEG ratio of 1.21, which is lower than the Internet - Software industry's average PEG ratio of 1.76 [3] Industry Context - The Internet - Software industry is part of the Computer and Technology sector, holding a Zacks Industry Rank of 53, placing it in the top 22% of over 250 industries [4] - The top 50% rated industries tend to outperform the bottom half by a factor of 2 to 1 [4]