Shares of Splunk Inc. (NASDAQ:SPLK) rallied to a new 52-week high of $87.43, eventually closing a tad lower at $86.63 on Jan 2. The company is benefiting from rapid adoption of its software, expanding product portfolio, strong partner base and accretive acquisitions.
Notably, the stock has returned 65% in a year, substantially better than the industry’s rally of 29.6%. The stock has a market cap of $11.49 billion.
Splunk carries a Zacks Rank #2 (Buy).
Key Factors
Recently, market research firm Gartner declared Splunk as a leader in its 2017 Magic Quadrant for Security Information and Event Management for the fifth straight year.
Splunk Inc. Price and Consensus
The company’s software, which is traditionally used for IT operational intelligence, security, fraud-detection, application analytics and other relevant cases, continues to gain rapid adoption.
This was evident from the fact that total billings jumped 38% year over year to $381.6 million in the last quarter. Moreover, Splunk won more than 581 orders worth $100K, individually. The company added more than 450 new enterprise customers including the likes of SunTrust Bank, Vodafone (LON:VOD) Egypt, Defense Health Agency and Johns Hopkins University among others.
Moreover, expanding product portfolio has been a key catalyst in forming Splunk’s growth trajectory. In November 2017, the company announced new product integrations with Amazon (NASDAQ:AMZN) Web Services (AWS) that covers IT, security, Big Data and IoT use cases.
During the quarter, the company launched Splunk Enterprise 7.0, Splunk Cloud, IT Service Intelligence 3.0, Enterprise Security Content Updates and User Behavior Analytics 4.0.
Additionally, partnerships with the likes of AWS, Booz Allen Hamilton and Accenture are helping the company launch products. Expanding portfolio is bossting clientele, which is a key growth driver.
Further, acquisitions of Rocana (selected assets) and SignalSense will boost Splunk’s data platform and machine learning capabilities across product portfolio.
Estimate Revisions
The Zacks Consensus Estimate for fiscal 2018 has increased by a penny to 59 cents over the last 30 days. For fiscal 2019, the figure is steady at 86 cents over the same time frame.
Other Picks
Arista Networks Inc. (NYSE:ANET) , Western Digital Corporation (NASDAQ:WDC) and Yelp Inc. (NYSE:YELP) are some of the stocks worth considering in the broader technology sector. All the three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Arista Networks, Western Digital and Yelp are currently pegged at 23.79%, 25.06% and 26.63%, respectively.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Western Digital Corporation (WDC): Free Stock Analysis Report
Yelp Inc. (YELP): Free Stock Analysis Report
Splunk Inc. (SPLK): Free Stock Analysis Report
Arista Networks, Inc. (ANET): Free Stock Analysis Report
Original post