In the latest close session, Nutanix (NTNX) was up +1.32% at $41.30. This move outpaced the S&P 500's daily loss of 0.49%. Elsewhere, the Dow saw a downswing of 0.05%, while the tech-heavy Nasdaq depreciated by 0.9%.
Prior to today's trading, shares of the enterprise cloud platform services provider had gained 7.46% lagged the Computer and Technology sector's gain of 21.92% and the S&P 500's gain of 12.8%.
Analysts and investors alike will be keeping a close eye on the performance of Nutanix in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.35, marking a 16.67% fall compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $686 million, up 7.36% from the year-ago period.
NTNX's full-year Zacks Consensus Estimates are calling for earnings of $1.81 per share and revenue of $2.82 billion. These results would represent year-over-year changes of +11.73% and +11.05%, respectively.
It is also important to note the recent changes to analyst estimates for Nutanix. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 4.25% downward. 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 22.54. This represents a premium compared to its industry average Forward P/E of 12.73.
Investors should also note that NTNX has a PEG ratio of 1.4 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. NTNX's industry had an average PEG ratio of 1.13 as of yesterday's close.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 95, placing it within the top 39% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NTNX in the coming trading sessions, be sure to utilize Zacks.com.
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