In the latest close session, Nutanix (NTNX) was down 1.6% at $54.58. This change lagged the S&P 500's daily gain of 0.38%. Meanwhile, the Dow experienced a rise of 0.29%, and the technology-dominated Nasdaq saw an increase of 0.62%.
Shares of the enterprise cloud platform services provider witnessed a gain of 14.8% over the previous month, beating the performance of the Computer and Technology sector with its loss of 0.53%, and the S&P 500's gain of 1.61%.
The upcoming earnings release of Nutanix will be of great interest to investors. The company is predicted to post an EPS of $0.48, indicating a 29.73% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $737.46 million, up 12.89% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.91 per share and a revenue of $2.83 billion, demonstrating changes of +17.9% and +11.57%, respectively, from the preceding year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Nutanix. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Nutanix presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Nutanix is currently exchanging hands at a Forward P/E ratio of 29.03. For comparison, its industry has an average Forward P/E of 12.97, which means Nutanix is trading at a premium to the group.
Meanwhile, NTNX's PEG ratio is currently 1.81. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 0.99.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 79, which puts it in the top 33% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).