Trade-Ideas LLC identified

Splunk

(

SPLK

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Splunk as such a stock due to the following factors:

  • SPLK has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $99.3 million.
  • SPLK is up 4.5% today from today's close.

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More details on SPLK:

Splunk, Inc. provides software products that enable organizations to gain real-time operational intelligence in the United States and internationally. The company's products enable users to collect, index, search, explore, monitor, and analyze data regardless of format or source users. Currently there are 23 analysts that rate Splunk a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Splunk has been 1.6 million shares per day over the past 30 days. Splunk has a market cap of $7.4 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 2.69 and a short float of 9.7% with 7.05 days to cover. Shares are up 4.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Splunk as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and feeble growth in its earnings per share.

Highlights from the ratings report include:

  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Software industry and the overall market, SPLUNK INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • SPLUNK INC's earnings per share declined by 32.5% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, SPLUNK INC reported poor results of -$1.81 versus -$0.75 in the prior year. This year, the market expects an improvement in earnings ($0.13 versus -$1.81).
  • The change in net income from the same quarter one year ago has significantly exceeded that of the Software industry average, but is less than that of the S&P 500. The net income has significantly decreased by 40.3% when compared to the same quarter one year ago, falling from -$50.76 million to -$71.19 million.
  • The gross profit margin for SPLUNK INC is currently very high, coming in at 84.21%. Regardless of SPLK's high profit margin, it has managed to decrease from the same period last year.
  • Net operating cash flow has significantly increased by 51.31% to $28.62 million when compared to the same quarter last year. In addition, SPLUNK INC has also vastly surpassed the industry average cash flow growth rate of -29.21%.

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