Nutanix (NTNX) closed the most recent trading day at $43.21, moving -5.53% from the previous trading session. This change lagged the S&P 500's 2.06% loss on the day. Meanwhile, the Dow lost 1.76%, and the Nasdaq, a tech-heavy index, lost 2.39%.
Prior to today's trading, shares of the enterprise cloud platform services provider had lost 13.6% lagged the Computer and Technology sector's gain of 1.71% and the S&P 500's gain of 1.63%.
The upcoming earnings release of Nutanix will be of great interest to investors. The company is predicted to post an EPS of $0.45, indicating a 19.64% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $709.9 million, up 8.43% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.79 per share and a revenue of $2.84 billion, representing changes of +10.49% and +11.89%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nutanix. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Nutanix is holding a Zacks Rank of #3 (Hold) right now.
From a valuation perspective, Nutanix is currently exchanging hands at a Forward P/E ratio of 25.49. This valuation marks a premium compared to its industry average Forward P/E of 17.01.
Investors should also note that NTNX has a PEG ratio of 1.95 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 1.43.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 74, putting it in the top 31% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Nutanix (NTNX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
