In the latest trading session, Nutanix (NTNX) closed at $75.54, marking a +1.7% move from the previous day. The stock exceeded the S&P 500, which registered a loss of 0.3% for the day. Elsewhere, the Dow lost 0.46%, while the tech-heavy Nasdaq lost 0.38%.
Coming into today, shares of the enterprise cloud platform services provider had lost 2.83% in the past month. In that same time, the Computer and Technology sector gained 4.85%, while the S&P 500 gained 3.64%.
The investment community will be paying close attention to the earnings performance of Nutanix in its upcoming release. The company is forecasted to report an EPS of $0.31, showcasing a 14.81% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $642.3 million, up 17.22% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.72 per share and a revenue of $2.53 billion, demonstrating changes of +31.3% and +17.58%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Nutanix. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.44% lower. At present, Nutanix boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Nutanix is currently exchanging hands at a Forward P/E ratio of 43.09. For comparison, its industry has an average Forward P/E of 19.24, which means Nutanix is trading at a premium to the group.
Also, we should mention that NTNX has a PEG ratio of 2.13. 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 1.92 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 145, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Nutanix (NTNX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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