Nutanix (NTNX) ended the recent trading session at $75.53, demonstrating a +1.53% change from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.34%. On the other hand, the Dow registered a gain of 0.09%, and the technology-centric Nasdaq increased by 0.42%.
Shares of the enterprise cloud platform services provider have appreciated by 10.83% over the course of the past month, outperforming the Computer and Technology sector's gain of 8.07%, and the S&P 500's gain of 3.54%.
Analysts and investors alike will be keeping a close eye on the performance of Nutanix in its upcoming earnings disclosure. In that report, analysts expect Nutanix to post earnings of $0.41 per share. This would mark a year-over-year decline of 2.38%. In the meantime, our current consensus estimate forecasts the revenue to be $676.53 million, indicating a 14.48% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.89 per share and revenue of $2.92 billion, which would represent changes of +16.67% and +15.11%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nutanix. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.42% downward. As of now, Nutanix holds a Zacks Rank of #3 (Hold).
In terms of valuation, Nutanix is currently trading at a Forward P/E ratio of 39.46. For comparison, its industry has an average Forward P/E of 16.84, which means Nutanix is trading at a premium to the group.
It is also worth noting that NTNX currently has a PEG ratio of 2.82. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 1.98.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 87, finds itself in the top 36% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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