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Nutanix (NTNX) Stock Drops Despite Market Gains: Important Facts to Note

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Nutanix (NTNX - Free Report) closed at $67.71 in the latest trading session, marking a -1.23% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.06%. Elsewhere, the Dow saw an upswing of 0.68%, while the tech-heavy Nasdaq depreciated by 0.26%.

Shares of the enterprise cloud platform services provider witnessed a gain of 0.9% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.16%, and the S&P 500's gain of 4.57%.

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 25, 2025. In that report, analysts expect Nutanix to post earnings of $0.41 per share. This would mark a year-over-year decline of 2.38%. Meanwhile, our latest consensus estimate is calling for revenue of $677.02 million, up 14.56% from the prior-year quarter.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.9 per share and a revenue of $2.92 billion, representing changes of +17.28% and +15.17%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates 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 business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. At present, Nutanix boasts a Zacks Rank of #2 (Buy).

Investors should also note Nutanix's current valuation metrics, including its Forward P/E ratio of 36.14. This denotes a premium relative to the industry average Forward P/E of 17.3.

We can additionally observe that NTNX currently boasts a PEG ratio of 2.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 1.92.

The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 61, placing it within the top 25% of over 250 industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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