We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Nutanix (NTNX) Stock Slides as Market Rises: Facts to Know Before You Trade
Read MoreHide Full Article
Nutanix (NTNX - Free Report) closed at $59.60 in the latest trading session, marking a -0.83% move from the prior day. This move lagged the S&P 500's daily gain of 0.1%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq gained 0.28%.
The enterprise cloud platform services provider's stock has climbed by 14.76% in the past month, exceeding the Computer and Technology sector's gain of 8.41% and the S&P 500's gain of 4.08%.
The investment community will be paying close attention to the earnings performance of Nutanix in its upcoming release. The company is expected to report EPS of $0.19, down 20.83% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $536.81 million, indicating an 8.62% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.22 per share and a revenue of $2.14 billion, representing changes of +103.33% and +14.75%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nutanix. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 19.57% higher. As of now, Nutanix holds a Zacks Rank of #3 (Hold).
Looking at valuation, Nutanix is presently trading at a Forward P/E ratio of 49.39. This expresses a premium compared to the average Forward P/E of 27.11 of its industry.
One should further note that NTNX currently holds a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computers - IT Services industry stood at 3.05 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Nutanix (NTNX) Stock Slides as Market Rises: Facts to Know Before You Trade
Nutanix (NTNX - Free Report) closed at $59.60 in the latest trading session, marking a -0.83% move from the prior day. This move lagged the S&P 500's daily gain of 0.1%. At the same time, the Dow lost 0.08%, and the tech-heavy Nasdaq gained 0.28%.
The enterprise cloud platform services provider's stock has climbed by 14.76% in the past month, exceeding the Computer and Technology sector's gain of 8.41% and the S&P 500's gain of 4.08%.
The investment community will be paying close attention to the earnings performance of Nutanix in its upcoming release. The company is expected to report EPS of $0.19, down 20.83% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $536.81 million, indicating an 8.62% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.22 per share and a revenue of $2.14 billion, representing changes of +103.33% and +14.75%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nutanix. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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. Within the past 30 days, our consensus EPS projection has moved 19.57% higher. As of now, Nutanix holds a Zacks Rank of #3 (Hold).
Looking at valuation, Nutanix is presently trading at a Forward P/E ratio of 49.39. This expresses a premium compared to the average Forward P/E of 27.11 of its industry.
One should further note that NTNX currently holds a PEG ratio of 1.22. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computers - IT Services industry stood at 3.05 at the close of the market yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 65, putting it in the top 26% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.