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Nutanix (NTNX) Stock Slides as Market Rises: Facts to Know Before You Trade

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The latest trading session saw Nutanix (NTNX - Free Report) ending at $70.30, denoting a -0.21% adjustment from its last day's close. The stock's change was less than the S&P 500's daily gain of 0.38%. Elsewhere, the Dow gained 0.59%, while the tech-heavy Nasdaq added 0.09%.

Coming into today, shares of the enterprise cloud platform services provider had gained 9.04% in the past month. In that same time, the Computer and Technology sector gained 7.11%, while the S&P 500 gained 4.9%.

The investment community will be paying close attention to the earnings performance of Nutanix in its upcoming release. The company is slated to reveal its earnings on November 26, 2024. On that day, Nutanix is projected to report earnings of $0.30 per share, which would represent year-over-year growth of 3.45%. Meanwhile, our latest consensus estimate is calling for revenue of $571.49 million, up 11.83% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates project earnings of $1.40 per share and a revenue of $2.45 billion, demonstrating changes of +6.87% and +14.24%, respectively, from the preceding year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nutanix. These revisions help to show the ever-changing nature of 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 reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Nutanix boasts a Zacks Rank of #2 (Buy).

Valuation is also important, so investors should note that Nutanix has a Forward P/E ratio of 50.19 right now. This represents a premium compared to its industry's average Forward P/E of 28.51.

We can also see that NTNX currently has a PEG ratio of 2.7. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computers - IT Services industry stood at 2.97 at the close of the market yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 42, this industry ranks in the top 17% of all industries, numbering over 250.

The Zacks Industry Rank is ordered 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.

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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