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Extreme Networks (EXTR) Outpaces Stock Market Gains: What You Should Know
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Extreme Networks (EXTR - Free Report) closed the most recent trading day at $24.48, moving +1.12% from the previous trading session. This change outpaced the S&P 500's 0.01% gain on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.67%.
Heading into today, shares of the maker of network infrastructure equipment had lost 10.8% over the past month, lagging the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.45% in that time.
Extreme Networks will be looking to display strength as it nears its next earnings release. In that report, analysts expect Extreme Networks to post earnings of $0.32 per share. This would mark year-over-year growth of 60%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $349.95 million, up 17.56% from the year-ago period.
EXTR's full-year Zacks Consensus Estimates are calling for earnings of $1.55 per share and revenue of $1.5 billion. These results would represent year-over-year changes of +42.2% and +14.36%, respectively.
Any recent changes to analyst estimates for Extreme Networks should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Extreme Networks is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Extreme Networks currently has a Forward P/E ratio of 15.67. For comparison, its industry has an average Forward P/E of 13.79, which means Extreme Networks is trading at a premium to the group.
We can also see that EXTR currently has a PEG ratio of 0.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Networking industry currently had an average PEG ratio of 0.92 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow EXTR in the coming trading sessions, be sure to utilize Zacks.com.
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Extreme Networks (EXTR) Outpaces Stock Market Gains: What You Should Know
Extreme Networks (EXTR - Free Report) closed the most recent trading day at $24.48, moving +1.12% from the previous trading session. This change outpaced the S&P 500's 0.01% gain on the day. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 0.67%.
Heading into today, shares of the maker of network infrastructure equipment had lost 10.8% over the past month, lagging the Computer and Technology sector's loss of 4.63% and the S&P 500's loss of 4.45% in that time.
Extreme Networks will be looking to display strength as it nears its next earnings release. In that report, analysts expect Extreme Networks to post earnings of $0.32 per share. This would mark year-over-year growth of 60%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $349.95 million, up 17.56% from the year-ago period.
EXTR's full-year Zacks Consensus Estimates are calling for earnings of $1.55 per share and revenue of $1.5 billion. These results would represent year-over-year changes of +42.2% and +14.36%, respectively.
Any recent changes to analyst estimates for Extreme Networks should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
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 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. Within the past 30 days, our consensus EPS projection remained stagnant. Extreme Networks is holding a Zacks Rank of #2 (Buy) right now.
Digging into valuation, Extreme Networks currently has a Forward P/E ratio of 15.67. For comparison, its industry has an average Forward P/E of 13.79, which means Extreme Networks is trading at a premium to the group.
We can also see that EXTR currently has a PEG ratio of 0.92. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer - Networking industry currently had an average PEG ratio of 0.92 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 33, putting it in the top 14% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
To follow EXTR in the coming trading sessions, be sure to utilize Zacks.com.