In the latest trading session, Nutanix (NTNX) closed at $69.09, marking a +1.23% move from the previous day. Elsewhere, the Dow saw an upswing of 0.47%, while the tech-heavy Nasdaq depreciated by 0.16%.
Shares of the enterprise cloud platform services provider witnessed a loss of 9.46% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 1.8%, and the S&P 500's gain of 1.16%.
Market participants will be closely following the financial results of Nutanix in its upcoming release. It is anticipated that the company will report an EPS of $0.41, marking a 2.38% fall compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $677.02 million, indicating a 14.56% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.9 per share and a revenue of $2.92 billion, signifying shifts of +17.28% and +15.17%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Nutanix. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Currently, Nutanix is carrying a Zacks Rank of #3 (Hold).
Looking at valuation, Nutanix is presently trading at a Forward P/E ratio of 35.98. This denotes a premium relative to the industry average Forward P/E of 16.71.
We can also see that NTNX currently has a PEG ratio of 2.58. 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. The Computers - IT Services industry currently had an average PEG ratio of 1.81 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 41, putting it in the top 17% 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.
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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