Nutanix (NTNX) closed the most recent trading day at $69.08, moving +1.38% from the previous trading session. This change outpaced the S&P 500's 0.99% loss on the day. At the same time, the Dow lost 0.23%, and the tech-heavy Nasdaq lost 1.58%.
The enterprise cloud platform services provider's shares have seen a decrease of 9.78% over the last month, not keeping up with the Computer and Technology sector's gain of 7.77% and the S&P 500's gain of 3.59%.
The upcoming earnings release of Nutanix will be of great interest to investors. 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. Our most recent consensus estimate is calling for quarterly revenue of $677.02 million, up 14.56% from the year-ago period.
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 should also pay attention to any latest changes in analyst estimates for Nutanix. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, 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. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Currently, Nutanix is carrying a Zacks Rank of #1 (Strong Buy).
With respect to valuation, Nutanix is currently being traded at a Forward P/E ratio of 35.92. This signifies a premium in comparison to the average Forward P/E of 16.71 for its industry.
Also, we should mention that NTNX has a PEG ratio of 2.57. 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. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 1.93.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 61, finds itself in the top 25% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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