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Nutanix (NTNX) Sees a More Significant Dip Than Broader Market: Some Facts to Know
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In the latest close session, Nutanix (NTNX - Free Report) was down 8.08% at $58.55. The stock fell short of the S&P 500, which registered a loss of 4.36% for the day. Meanwhile, the Dow lost 3.44%, and the Nasdaq, a tech-heavy index, lost 5.52%.
Shares of the enterprise cloud platform services provider witnessed a loss of 13.24% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 11.65%, and the S&P 500's loss of 0.38%.
Market participants will be closely following the financial results of Nutanix in its upcoming release. It is anticipated that the company will report an EPS of $0.6, marking a 46.34% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $761.76 million, indicating a 13.6% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.31 per share and revenue of $3.21 billion, indicating changes of +13.24% and +16.68%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Nutanix. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 an unchanged state. As of now, Nutanix holds a Zacks Rank of #3 (Hold).
In terms of valuation, Nutanix is presently being traded at a Forward P/E ratio of 27.59. This indicates a premium in contrast to its industry's Forward P/E of 15.3.
Also, we should mention that NTNX has a PEG ratio of 1.6. 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 1.3.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 107, finds itself in the top 44% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Nutanix (NTNX) Sees a More Significant Dip Than Broader Market: Some Facts to Know
In the latest close session, Nutanix (NTNX - Free Report) was down 8.08% at $58.55. The stock fell short of the S&P 500, which registered a loss of 4.36% for the day. Meanwhile, the Dow lost 3.44%, and the Nasdaq, a tech-heavy index, lost 5.52%.
Shares of the enterprise cloud platform services provider witnessed a loss of 13.24% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 11.65%, and the S&P 500's loss of 0.38%.
Market participants will be closely following the financial results of Nutanix in its upcoming release. It is anticipated that the company will report an EPS of $0.6, marking a 46.34% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $761.76 million, indicating a 13.6% growth compared to the corresponding quarter of the prior year.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.31 per share and revenue of $3.21 billion, indicating changes of +13.24% and +16.68%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Nutanix. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 an unchanged state. As of now, Nutanix holds a Zacks Rank of #3 (Hold).
In terms of valuation, Nutanix is presently being traded at a Forward P/E ratio of 27.59. This indicates a premium in contrast to its industry's Forward P/E of 15.3.
Also, we should mention that NTNX has a PEG ratio of 1.6. 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 1.3.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 107, finds itself in the top 44% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.