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Nutanix (NTNX) Suffers a Larger Drop Than the General Market: Key Insights

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In the latest market close, Nutanix (NTNX - Free Report) reached $61.59, with a -0.69% movement compared to the previous day. This change lagged the S&P 500's 0.03% loss on the day. Meanwhile, the Dow experienced a drop of 0.61%, and the technology-dominated Nasdaq saw an increase of 0.56%.

Coming into today, shares of the enterprise cloud platform services provider had gained 1.34% in the past month. In that same time, the Computer and Technology sector gained 1.65%, while the S&P 500 gained 1.39%.

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 $0.30, reflecting a 3.45% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $571.49 million, indicating a 11.83% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.40 per share and revenue of $2.45 billion, which would represent changes of +6.87% and +14.24%, respectively, from the prior year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nutanix. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 5.58% higher within the past month. Currently, Nutanix is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, Nutanix is holding a Forward P/E ratio of 44.19. This indicates a premium in contrast to its industry's Forward P/E of 28.15.

One should further note that NTNX currently holds a PEG ratio of 2.37. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. By the end of yesterday's trading, the Computers - IT Services industry had an average PEG ratio of 2.84.

The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 45, placing it within the top 18% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow NTNX in the coming trading sessions, be sure to utilize Zacks.com.


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