Nutanix (NTNX – Free Report) ended the recent trading session at $61.28, demonstrating a +0.16% swing from the preceding day’s closing price. The stock outperformed the S&P 500, which registered a daily loss of 0.22%. Meanwhile, the Dow lost 0.36%, and the Nasdaq, a tech-heavy index, lost 0.16%.
Coming into today, shares of the enterprise cloud platform services provider had lost 10.57% in the past month. In that same time, the Computer and Technology sector gained 1.86%, while the S&P 500 lost 2.36%.
Analysts and investors alike will be keeping a close eye on the performance of Nutanix in its upcoming earnings disclosure. The company is expected to report EPS of $0.47, up 2.17% from the prior-year quarter. In the meantime, our current consensus estimate forecasts the revenue to be $641.84 million, indicating a 13.55% growth compared to the corresponding quarter of the prior year.
For the full year, the Zacks Consensus Estimates project earnings of $1.49 per share and a revenue of $2.46 billion, demonstrating changes of +13.74% and +14.5%, respectively, from the preceding 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. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. Within the past 30 days, our consensus EPS projection has moved 1.37% higher. Currently, Nutanix is carrying a Zacks Rank of #3 (Hold).
From a valuation perspective, Nutanix is currently exchanging hands at a Forward P/E ratio of 41.19. This expresses a premium compared to the average Forward P/E of 27.7 of its industry.
Also, we should mention that NTNX has a PEG ratio of 2.08. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock’s expected earnings growth rate. By the end of yesterday’s trading, the Computers – IT Services industry had an average PEG ratio of 2.58.
The Computers – IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 137, finds itself in the bottom 46% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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