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Nutanix (NTNX) Stock Slides as Market Rises: Facts to Know Before You Trade

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The most recent trading session ended with Nutanix (NTNX - Free Report) standing at $63.27, reflecting a -1.69% shift from the previouse trading day's closing. This change lagged the S&P 500's daily gain of 0.4%. Meanwhile, the Dow gained 0.09%, and the Nasdaq, a tech-heavy index, added 0.63%.

Coming into today, shares of the enterprise cloud platform services provider had gained 9.1% in the past month. In that same time, the Computer and Technology sector gained 4.88%, while the S&P 500 gained 3.76%.

The investment community will be paying close attention to the earnings performance of Nutanix in its upcoming release. The company is forecasted to report an EPS of $0.30, showcasing a 3.45% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $571.49 million, up 11.83% from the year-ago period.

NTNX's full-year Zacks Consensus Estimates are calling for earnings of $1.40 per share and revenue of $2.45 billion. These results would represent year-over-year changes of +6.87% and +14.24%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Nutanix. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health 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. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.58% 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 45.85. For comparison, its industry has an average Forward P/E of 29.65, which means Nutanix is trading at a premium to the group.

We can also see that NTNX currently has a PEG ratio of 2.46. 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 average PEG ratio for the Computers - IT Services industry stood at 2.88 at the close of the market yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 45, this industry ranks in the top 18% of all industries, numbering over 250.

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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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