Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Trade-Ideas LLC identified Splunk ( SPLK) as a new lifetime high 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 $143.5 million.
- SPLK has traded 12,016 shares today.
- SPLK is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SPLK with the Ticky from Trade-Ideas. See the FREE profile for SPLK NOW at Trade-Ideas More details on SPLK: Splunk is the engine for machine data. Splunk can read data from just about any source imaginable, such as networks, web servers, call detail records, service delivery platforms, custom applications, application servers, GPS systems, social media, and structured databases. Currently there are 12 analysts that rate Splunk a buy, 1 analyst rates it a sell, and 6 rate it a hold. The average volume for Splunk has been 1.4 million shares per day over the past 30 days. Splunk has a market cap of $9.7 billion and is part of the technology sector and computer software & services industry. Shares are up 25.9% year-to-date as of the close of trading on Wednesday. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Splunk as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and feeble growth in its earnings per share. Highlights from the ratings report include:
- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Software industry. The net income has significantly decreased by 202.3% when compared to the same quarter one year ago, falling from -$5.47 million to -$16.55 million.
- Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. 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 has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. 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 -$0.39 versus -$0.01 in the prior year. This year, the market expects an improvement in earnings (-$0.01 versus -$0.39).
- The gross profit margin for SPLUNK INC is currently very high, coming in at 91.38%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -21.04% is in-line with the industry average.
- Net operating cash flow has significantly increased by 105.50% to $13.32 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 -0.05%.
- You can view the full Splunk Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.