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Nutanix (NTNX) Falls More Steeply Than Broader Market: What Investors Need to Know
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In the latest trading session, Nutanix (NTNX - Free Report) closed at $66.96, marking a -4.32% move from the previous day. This change lagged the S&P 500's 1.09% loss on the day. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 2.15%.
Prior to today's trading, shares of the enterprise cloud platform services provider had gained 0.01% lagged the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.
The investment community will be paying close attention to the earnings performance of Nutanix in its upcoming release. On that day, Nutanix is projected to report earnings of $0.6 per share, which would represent year-over-year growth of 46.34%. At the same time, our most recent consensus estimate is projecting a revenue of $761.76 million, reflecting a 13.6% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.31 per share and a revenue of $3.21 billion, signifying shifts of +13.24% and +12.44%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Nutanix. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has moved 2.3% higher. Nutanix presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Nutanix is presently trading at a Forward P/E ratio of 30.31. For comparison, its industry has an average Forward P/E of 14.61, which means Nutanix is trading at a premium to the group.
We can additionally observe that NTNX currently boasts a PEG ratio of 1.75. 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 Computers - IT Services was holding an average PEG ratio of 1.32 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 40% of all industries, numbering over 250.
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.
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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Nutanix (NTNX) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest trading session, Nutanix (NTNX - Free Report) closed at $66.96, marking a -4.32% move from the previous day. This change lagged the S&P 500's 1.09% loss on the day. Elsewhere, the Dow lost 0.34%, while the tech-heavy Nasdaq lost 2.15%.
Prior to today's trading, shares of the enterprise cloud platform services provider had gained 0.01% lagged the Computer and Technology sector's gain of 1.99% and the S&P 500's gain of 2.44%.
The investment community will be paying close attention to the earnings performance of Nutanix in its upcoming release. On that day, Nutanix is projected to report earnings of $0.6 per share, which would represent year-over-year growth of 46.34%. At the same time, our most recent consensus estimate is projecting a revenue of $761.76 million, reflecting a 13.6% rise from the equivalent quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.31 per share and a revenue of $3.21 billion, signifying shifts of +13.24% and +12.44%, respectively, from the last year.
Investors should also pay attention to any latest changes in analyst estimates for Nutanix. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 past month, the Zacks Consensus EPS estimate has moved 2.3% higher. Nutanix presently features a Zacks Rank of #2 (Buy).
Looking at valuation, Nutanix is presently trading at a Forward P/E ratio of 30.31. For comparison, its industry has an average Forward P/E of 14.61, which means Nutanix is trading at a premium to the group.
We can additionally observe that NTNX currently boasts a PEG ratio of 1.75. 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 Computers - IT Services was holding an average PEG ratio of 1.32 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 148, this industry ranks in the bottom 40% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.