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Why Nutanix (NTNX) Outpaced the Stock Market Today
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Nutanix (NTNX - Free Report) closed at $73.76 in the latest trading session, marking a +2.29% move from the prior day. This change outpaced the S&P 500's 1.47% gain on the day. At the same time, the Dow added 1.34%, and the tech-heavy Nasdaq gained 1.95%.
Shares of the enterprise cloud platform services provider have depreciated by 6.11% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.41%, and the S&P 500's gain of 0.64%.
The upcoming earnings release of Nutanix will be of great interest to investors. The company is forecasted to report an EPS of $0.31, showcasing a 14.81% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $642.3 million, up 17.22% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.73 per share and a revenue of $2.53 billion, demonstrating changes of +32.06% and 0%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Nutanix. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.69% lower within the past month. As of now, Nutanix holds a Zacks Rank of #3 (Hold).
In terms of valuation, Nutanix is currently trading at a Forward P/E ratio of 38.71. This denotes a premium relative to the industry average Forward P/E of 17.34.
Investors should also note that NTNX has a PEG ratio of 1.91 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.83 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 145, this industry ranks in the bottom 42% of all industries, numbering over 250.
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.
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Why Nutanix (NTNX) Outpaced the Stock Market Today
Nutanix (NTNX - Free Report) closed at $73.76 in the latest trading session, marking a +2.29% move from the prior day. This change outpaced the S&P 500's 1.47% gain on the day. At the same time, the Dow added 1.34%, and the tech-heavy Nasdaq gained 1.95%.
Shares of the enterprise cloud platform services provider have depreciated by 6.11% over the course of the past month, underperforming the Computer and Technology sector's gain of 3.41%, and the S&P 500's gain of 0.64%.
The upcoming earnings release of Nutanix will be of great interest to investors. The company is forecasted to report an EPS of $0.31, showcasing a 14.81% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $642.3 million, up 17.22% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.73 per share and a revenue of $2.53 billion, demonstrating changes of +32.06% and 0%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Nutanix. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.69% lower within the past month. As of now, Nutanix holds a Zacks Rank of #3 (Hold).
In terms of valuation, Nutanix is currently trading at a Forward P/E ratio of 38.71. This denotes a premium relative to the industry average Forward P/E of 17.34.
Investors should also note that NTNX has a PEG ratio of 1.91 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.83 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 145, this industry ranks in the bottom 42% of all industries, numbering over 250.
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.