In the latest close session, Nutanix (NTNX) was up +1.74% at $42.02. The stock's performance was ahead of the S&P 500's daily loss of 0.04%. At the same time, the Dow lost 0.57%, and the tech-heavy Nasdaq gained 0.04%.
Shares of the enterprise cloud platform services provider have appreciated by 8.66% over the course of the past month, underperforming the Computer and Technology sector's gain of 20.43%, and the S&P 500's gain of 12.24%.
Market participants will be closely following the financial results of Nutanix in its upcoming release. The company is forecasted to report an EPS of $0.35, showcasing a 16.67% downward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $686 million, up 7.36% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.81 per share and revenue of $2.82 billion. These totals would mark changes of +11.73% and +11.05%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Nutanix. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection has moved 4.25% lower. 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 22.84. This denotes a premium relative to the industry average Forward P/E of 12.82.
We can also see that NTNX currently has a PEG ratio of 1.42. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computers - IT Services stocks are, on average, holding a PEG ratio of 1.11 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 86, which puts it in the top 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Nutanix (NTNX): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).