Nutanix (NTNX) ended the recent trading session at $68.80, demonstrating a -1.31% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 1.12%. Meanwhile, the Dow lost 0.84%, and the Nasdaq, a tech-heavy index, lost 1.9%.
Coming into today, shares of the enterprise cloud platform services provider had lost 2.02% in the past month. In that same time, the Computer and Technology sector gained 3.58%, while the S&P 500 gained 1.26%.
Market participants will be closely following the financial results of Nutanix in its upcoming release. The company is forecasted to report an EPS of $0.41, showcasing a 2.38% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $677.02 million, up 14.56% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.9 per share and a revenue of $2.92 billion, indicating changes of +17.28% and +20.16%, respectively, from the former year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nutanix. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Nutanix is currently a Zacks Rank #2 (Buy).
Looking at its valuation, Nutanix is holding a Forward P/E ratio of 36.75. This valuation marks a premium compared to its industry average Forward P/E of 16.9.
Also, we should mention that NTNX has a PEG ratio of 2.63. 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 was holding an average PEG ratio of 1.92 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming 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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