Back to top

Image: Bigstock

Nutanix (NTNX) Stock Declines While Market Improves: Some Information for Investors

Read MoreHide Full Article

Nutanix (NTNX - Free Report) closed at $50.60 in the latest trading session, marking a -2.11% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.19%. Elsewhere, the Dow saw an upswing of 0.66%, while the tech-heavy Nasdaq depreciated by 0.03%.

Heading into today, shares of the enterprise cloud platform services provider had gained 9.72% over the past month, outpacing the Computer and Technology sector's gain of 0.02% and the S&P 500's gain of 0.54%.

The investment community will be closely monitoring the performance of Nutanix in its forthcoming earnings report. The company is forecasted to report an EPS of $0.45, showcasing a 19.64% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $709.9 million, indicating a 8.43% upward movement from the same quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.79 per share and a revenue of $2.84 billion, representing changes of +10.49% and +11.89%, respectively, from the prior year.

Investors might also notice recent changes to analyst estimates for Nutanix. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.02% decrease. Right now, Nutanix possesses a Zacks Rank of #3 (Hold).

Investors should also note Nutanix's current valuation metrics, including its Forward P/E ratio of 28.8. This denotes a premium relative to the industry average Forward P/E of 16.8.

We can additionally observe that NTNX currently boasts a PEG ratio of 2.2. 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 1.59.

The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 63, finds itself in the top 26% echelons of all 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.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Nutanix (NTNX) - free report >>

Published in