Back to top

Image: Bigstock

Why the Market Dipped But Nutanix (NTNX) Gained Today

Read MoreHide Full Article

Nutanix (NTNX - Free Report) closed the latest trading day at $49.35, indicating a +0.88% change from the previous session's end. This move outpaced the S&P 500's daily loss of 0.51%. Elsewhere, the Dow gained 0.2%, while the tech-heavy Nasdaq lost 0.93%.

Shares of the enterprise cloud platform services provider witnessed a loss of 11.02% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 2.41% and the S&P 500's loss of 0.26%.

Investors will be eagerly watching for the performance of Nutanix in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.19, reflecting a 20.83% decrease from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $537.12 million, showing an 8.68% escalation compared to the year-ago quarter.

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 +14.77%, respectively, from the prior year.

It's also important for investors to be aware of any recent modifications to analyst estimates for Nutanix. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 17.65% higher within the past month. As of now, Nutanix holds a Zacks Rank of #2 (Buy).

Investors should also note Nutanix's current valuation metrics, including its Forward P/E ratio of 39.95. This expresses a premium compared to the average Forward P/E of 28.26 of its industry.

We can also see that NTNX currently has a PEG ratio of 0.99. 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. The average PEG ratio for the Computers - IT Services industry stood at 3.27 at the close of the market yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 93, which puts it in the top 37% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Nutanix (NTNX) - free report >>

Published in