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Extreme Networks (EXTR) Laps the Stock Market: Here's Why
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The latest trading session saw Extreme Networks (EXTR - Free Report) ending at $24.60, denoting a +1.91% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.52%. Elsewhere, the Dow saw an upswing of 0.4%, while the tech-heavy Nasdaq appreciated by 0.58%.
The maker of network infrastructure equipment's shares have seen a decrease of 5.67% over the last month, not keeping up with the Computer and Technology sector's loss of 1.93% and the S&P 500's loss of 2.61%.
Investors will be eagerly watching for the performance of Extreme Networks in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 1, 2023. The company is expected to report EPS of $0.32, up 60% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $349.95 million, up 17.56% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.55 per share and revenue of $1.5 billion. These totals would mark changes of +42.2% and +14.36%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Extreme Networks. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Extreme Networks is currently a Zacks Rank #3 (Hold).
Digging into valuation, Extreme Networks currently has a Forward P/E ratio of 15.63. This indicates a premium in contrast to its industry's Forward P/E of 13.32.
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. Computer - Networking stocks are, on average, holding a PEG ratio of 0.92 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Extreme Networks (EXTR) Laps the Stock Market: Here's Why
The latest trading session saw Extreme Networks (EXTR - Free Report) ending at $24.60, denoting a +1.91% adjustment from its last day's close. This move outpaced the S&P 500's daily gain of 0.52%. Elsewhere, the Dow saw an upswing of 0.4%, while the tech-heavy Nasdaq appreciated by 0.58%.
The maker of network infrastructure equipment's shares have seen a decrease of 5.67% over the last month, not keeping up with the Computer and Technology sector's loss of 1.93% and the S&P 500's loss of 2.61%.
Investors will be eagerly watching for the performance of Extreme Networks in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on November 1, 2023. The company is expected to report EPS of $0.32, up 60% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $349.95 million, up 17.56% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.55 per share and revenue of $1.5 billion. These totals would mark changes of +42.2% and +14.36%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Extreme Networks. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Extreme Networks is currently a Zacks Rank #3 (Hold).
Digging into valuation, Extreme Networks currently has a Forward P/E ratio of 15.63. This indicates a premium in contrast to its industry's Forward P/E of 13.32.
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. Computer - Networking stocks are, on average, holding a PEG ratio of 0.92 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 86, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.