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Here's Why Nutanix (NTNX) Fell More Than Broader Market
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In the latest trading session, Nutanix (NTNX - Free Report) closed at $67.76, marking a -0.83% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.47%. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq depreciated by 0.51%.
Shares of the enterprise cloud platform services provider witnessed a gain of 11.69% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.19% and the S&P 500's gain of 1.67%.
The investment community will be paying close attention to the earnings performance of Nutanix in its upcoming release. It is anticipated that the company will report an EPS of $0.47, marking a 2.17% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $641.84 million, indicating a 13.55% upward movement from the same quarter last 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.
Investors might also notice recent changes to analyst estimates for Nutanix. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Nutanix is currently sporting a Zacks Rank of #2 (Buy).
In the context of valuation, Nutanix is at present trading with a Forward P/E ratio of 46. For comparison, its industry has an average Forward P/E of 29.21, which means Nutanix is trading at a premium to the group.
Meanwhile, NTNX's PEG ratio is currently 2.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services industry had an average PEG ratio of 2.79 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Here's Why Nutanix (NTNX) Fell More Than Broader Market
In the latest trading session, Nutanix (NTNX - Free Report) closed at $67.76, marking a -0.83% move from the previous day. The stock's change was less than the S&P 500's daily loss of 0.47%. Elsewhere, the Dow saw a downswing of 0.31%, while the tech-heavy Nasdaq depreciated by 0.51%.
Shares of the enterprise cloud platform services provider witnessed a gain of 11.69% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.19% and the S&P 500's gain of 1.67%.
The investment community will be paying close attention to the earnings performance of Nutanix in its upcoming release. It is anticipated that the company will report an EPS of $0.47, marking a 2.17% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $641.84 million, indicating a 13.55% upward movement from the same quarter last 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.
Investors might also notice recent changes to analyst estimates for Nutanix. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Nutanix is currently sporting a Zacks Rank of #2 (Buy).
In the context of valuation, Nutanix is at present trading with a Forward P/E ratio of 46. For comparison, its industry has an average Forward P/E of 29.21, which means Nutanix is trading at a premium to the group.
Meanwhile, NTNX's PEG ratio is currently 2.32. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computers - IT Services industry had an average PEG ratio of 2.79 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.
The Zacks Industry Rank gauges the strength of our 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.