In the latest trading session, Nutanix (NTNX) closed at $40.10, marking a +1.96% move from the previous day. This move outpaced the S&P 500's daily gain of 0.54%. At the same time, the Dow added 1.05%, and the tech-heavy Nasdaq gained 0.56%.
Shares of the enterprise cloud platform services provider witnessed a loss of 22.27% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 0.44%, and the S&P 500's gain of 0.74%.
The investment community will be paying close attention to the earnings performance of Nutanix in its upcoming release. The company's earnings per share (EPS) are projected to be $0.44, reflecting a 21.43% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $709.67 million, showing a 8.39% escalation compared to the year-ago quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.78 per share and a revenue of $2.84 billion, representing changes of +9.88% and +11.94%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Nutanix. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.35% downward. At present, Nutanix boasts a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Nutanix has a Forward P/E ratio of 22.05 right now. For comparison, its industry has an average Forward P/E of 16.6, which means Nutanix is trading at a premium to the group.
Investors should also note that NTNX has a PEG ratio of 1.68 right now. 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. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 1.34.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 85, placing it within the top 35% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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