In the latest trading session, Nutanix (NTNX) closed at $74.84, marking a +1.75% move from the previous day. The stock outpaced the S&P 500's daily gain of 0.54%. At the same time, the Dow added 0.52%, and the tech-heavy Nasdaq gained 0.74%.
The enterprise cloud platform services provider's stock has dropped by 0.05% in the past month, falling short of the Computer and Technology sector's gain of 5.77% and the S&P 500's gain of 4.2%.
Market participants will be closely following the financial results of Nutanix in its upcoming release. The company's upcoming EPS is projected at $0.31, signifying a 14.81% increase compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $642.3 million, indicating a 17.22% upward movement from the same quarter last year.
NTNX's full-year Zacks Consensus Estimates are calling for earnings of $1.72 per share and revenue of $2.53 billion. These results would represent year-over-year changes of +31.3% and +17.58%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nutanix. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 2.23% lower. Right now, Nutanix possesses a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nutanix has a Forward P/E ratio of 42.67 right now. This valuation marks a premium compared to its industry average Forward P/E of 19.14.
It's also important to note that NTNX currently trades at a PEG ratio of 2.11. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. NTNX's industry had an average PEG ratio of 1.93 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 79, putting it in the top 32% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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