The most recent trading session ended with Nutanix (NTNX – Free Report) standing at $62.41, reflecting a +0.39% shift from the previouse trading day’s closing. The stock exceeded the S&P 500, which registered a gain of 0.16% for the day. Meanwhile, the Dow gained 0.25%, and the Nasdaq, a tech-heavy index, lost 0.06%.
The enterprise cloud platform services provider’s stock has dropped by 3.12% in the past month, falling short of the Computer and Technology sector’s loss of 0.17% and the S&P 500’s loss of 2.8%.
Market participants will be closely following the financial results of Nutanix in its upcoming release. In that report, analysts expect Nutanix to post earnings of $0.47 per share. This would mark year-over-year growth of 2.17%. Meanwhile, our latest consensus estimate is calling for revenue of $641.84 million, up 13.55% from the prior-year quarter.
NTNX’s full-year Zacks Consensus Estimates are calling for earnings of $1.49 per share and revenue of $2.46 billion. These results would represent year-over-year changes of +13.74% and +14.5%, respectively.
Investors should also note any recent changes to analyst estimates for Nutanix. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts’ confidence in the company’s business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has shifted 1.37% upward. Nutanix is currently a Zacks Rank #3 (Hold).
Looking at valuation, Nutanix is presently trading at a Forward P/E ratio of 41.85. This expresses a premium compared to the average Forward P/E of 28.07 of its industry.
We can additionally observe that NTNX currently boasts a PEG ratio of 2.11. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company’s projected earnings growth. As the market closed yesterday, the Computers – IT Services industry was having an average PEG ratio of 2.47.
The Computers – IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 89, positioning it in the top 36% 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 follow all of these stock-moving metrics, and many more, on Zacks.com.
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