Nutanix (NTNX) ended the recent trading session at $61.88, demonstrating a -1.55% swing from the preceding day's closing price. This change was narrower than the S&P 500's daily loss of 2.24%. Elsewhere, the Dow saw a downswing of 1.73%, while the tech-heavy Nasdaq depreciated by 3.07%.
The enterprise cloud platform services provider's shares have seen a decrease of 10.45% over the last month, not keeping up with the Computer and Technology sector's loss of 6.31% and the S&P 500's loss of 4.17%.
Analysts and investors alike will be keeping a close eye on the performance of Nutanix in its upcoming earnings disclosure. On that day, Nutanix is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 35.71%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $625.44 million, up 19.23% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.61 per share and a revenue of $2.51 billion, representing changes of +22.9% and +16.71%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nutanix. Such recent modifications usually signify the changing landscape of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, 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 0.25% downward. As of now, Nutanix holds a Zacks Rank of #3 (Hold).
Investors should also note Nutanix's current valuation metrics, including its Forward P/E ratio of 39.04. This valuation marks a premium compared to its industry's average Forward P/E of 15.76.
Also, we should mention that NTNX has a PEG ratio of 1.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services was holding an average PEG ratio of 1.83 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 146, which puts it in the bottom 42% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much 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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