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Nutanix (NTNX) Moves 7.4% Higher: Will This Strength Last?

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Nutanix (NTNX - Free Report) shares rallied 7.4% in the last trading session to close at $37.51. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16.5% gain over the past four weeks.

The upswing came after Nutanix announced that its multi-database operations and management solution— Nutanix Era—will be offered in combination with HPE ProLiant servers, as a service through HPE GreenLake. This will accelerate and simplify the deployment of applications and databases, and also offer agile, elastic, and pay-per-use capabilities of the cloud.

This key partnership expansion with Hewlett Packard comes in close heels with the announcement of Toyota Motor Corp’s adoption of the Nutanix cloud platform to develop a virtual desktop infrastructure to increase the productivity of its Engineering Design Group.

Nutanix’s growing customer roster on the back of rapid cloud migration across industries are driving the company’s growth.

This enterprise cloud platform services provider is expected to post quarterly loss of $0.43 per share in its upcoming report, which represents a year-over-year change of -10.3%. Revenues are expected to be $363.7 million, up 10.9% from the year-ago quarter.

While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For Nutanix, the consensus EPS estimate for the quarter has been revised 4.7% higher over the last 30 days to the current level. And a positive trend in earnings estimate revision usually translates into price appreciation. So, make sure to keep an eye on NTNX going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank 3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>

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