In the latest market close, Nutanix (NTNX) reached $67.89, with a +1.08% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.06%. Elsewhere, the Dow gained 0.28%, while the tech-heavy Nasdaq lost 0.1%.
Shares of the enterprise cloud platform services provider witnessed a loss of 5.44% over the previous month, beating the performance of the Computer and Technology sector with its loss of 5.52% and underperforming the S&P 500's loss of 4.29%.
Investors will be eagerly watching for the performance of Nutanix in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.38, marking a 35.71% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $625.73 million, indicating a 19.28% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.62 per share and a revenue of $2.51 billion, representing changes of +23.66% and +16.82%, respectively, from the prior year.
Any recent changes to analyst estimates for Nutanix should also be noted by investors. Recent revisions tend to reflect the latest 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 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Nutanix currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Nutanix has a Forward P/E ratio of 41.54 right now. This signifies a premium in comparison to the average Forward P/E of 16.57 for its industry.
One should further note that NTNX currently holds a PEG ratio of 2.05. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 1.9 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 91, finds itself in the top 37% echelons 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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
