Nutanix (NTNX) closed the most recent trading day at $73.61, moving -3.84% from the previous trading session. This move lagged the S&P 500's daily gain of 0.28%. Elsewhere, the Dow gained 0.43%, while the tech-heavy Nasdaq added 0.09%.
Heading into today, shares of the enterprise cloud platform services provider had gained 3.35% over the past month, lagging the Computer and Technology sector's gain of 6.2% and the S&P 500's gain of 4.37%.
The investment community will be closely monitoring the performance of Nutanix in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.31, marking a 14.81% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $642.3 million, indicating a 17.22% growth compared to the corresponding quarter of the prior year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.72 per share and a revenue of $2.53 billion, indicating changes of +31.3% and +17.58%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Nutanix. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 2.23% downward. Nutanix is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Nutanix is currently being traded at a Forward P/E ratio of 44.41. Its industry sports an average Forward P/E of 20.02, so one might conclude that Nutanix is trading at a premium comparatively.
Also, we should mention that NTNX has a PEG ratio of 2.19. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. NTNX's industry had an average PEG ratio of 2.09 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 87, placing it within the top 36% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Nutanix (NTNX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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