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Nutanix (NTNX) Falls More Steeply Than Broader Market: What Investors Need to Know

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Nutanix (NTNX - Free Report) closed the most recent trading day at $68.79, moving -3.92% from the previous trading session. This change lagged the S&P 500's 0.25% loss on the day. Elsewhere, the Dow lost 0.45%, while the tech-heavy Nasdaq lost 0.3%.

Heading into today, shares of the enterprise cloud platform services provider had lost 1.11% over the past month, lagging the Computer and Technology sector's gain of 6.34% and the S&P 500's gain of 2.71%.

The investment community will be closely monitoring the performance of Nutanix in its forthcoming earnings report. The company is scheduled to release its earnings on August 27, 2025. On that day, Nutanix is projected to report earnings of $0.31 per share, which would represent year-over-year growth of 14.81%. Meanwhile, our latest consensus estimate is calling for revenue of $642.3 million, up 17.22% from the prior-year quarter.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.73 per share and a revenue of $2.53 billion, indicating changes of +32.06% and 0%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nutanix. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the 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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.22% higher. Nutanix is currently a Zacks Rank #3 (Hold).

Investors should also note Nutanix's current valuation metrics, including its Forward P/E ratio of 38.44. For comparison, its industry has an average Forward P/E of 17.05, which means Nutanix is trading at a premium to the group.

We can additionally observe that NTNX currently boasts a PEG ratio of 1.9. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computers - IT Services industry currently had an average PEG ratio of 1.99 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 100, which puts it in the top 41% of all 250+ industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within 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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