June 15, 2024


It's the Technology

Is Splunk (SPLK) Stock Outpacing Its Computer and Technology Peers This Year?


The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Splunk (SPLK) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock’s year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question.

Splunk is one of 665 companies in the Computer and Technology group. The Computer and Technology group currently sits at #10 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.

The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Splunk is currently sporting a Zacks Rank of #2 (Buy).

Within the past quarter, the Zacks Consensus Estimate for SPLK’s full-year earnings has moved 23.2% higher. This means that analyst sentiment is stronger and the stock’s earnings outlook is improving.

Based on the most recent data, SPLK has returned 23.6% so far this year. Meanwhile, stocks in the Computer and Technology group have lost about 10.2% on average. This means that Splunk is outperforming the sector as a whole this year.

QuickLogic (QUIK) is another Computer and Technology stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 3.5%.

For QuickLogic, the consensus EPS estimate for the current year has increased 36.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Breaking things down more, Splunk is a member of the Internet – Software industry, which includes 149 individual companies and currently sits at #186 in the Zacks Industry Rank. Stocks in this group have lost about 28.2% so far this year, so SPLK is performing better this group in terms of year-to-date returns.

In contrast, QuickLogic falls under the Electronics – Semiconductors industry. Currently, this industry has 43 stocks and is ranked #65. Since the beginning of the year, the industry has moved -9.6%.

Investors with an interest in Computer and Technology stocks should continue to track Splunk and QuickLogic. These stocks will be looking to continue their solid performance.

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Splunk Inc. (SPLK) : Free Stock Analysis Report
QuickLogic Corporation (QUIK) : Free Stock Analysis Report
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