Nutanix (NTNX) closed the most recent trading day at $45.16, moving -1.83% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.19% for the day. Elsewhere, the Dow gained 0.19%, while the tech-heavy Nasdaq added 0.1%.
Prior to today's trading, shares of the enterprise cloud platform services provider had gained 33.68% outpaced the Computer and Technology sector's gain of 19.09% and the S&P 500's gain of 9.13%.
The investment community will be closely monitoring the performance of Nutanix in its forthcoming earnings report. The company is expected to report EPS of $0.35, down 16.67% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $686 million, up 7.36% from the prior-year quarter.
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 should also pay attention to any latest changes in analyst estimates for Nutanix. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 1.12% upward. Nutanix is currently a Zacks Rank #3 (Hold).
Digging into valuation, Nutanix currently has a Forward P/E ratio of 25.43. Its industry sports an average Forward P/E of 13.93, so one might conclude that Nutanix is trading at a premium comparatively.
One should further note that NTNX currently holds a PEG ratio of 1.58. 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. As the market closed yesterday, the Computers - IT Services industry was having an average PEG ratio of 1.06.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 105, placing it within the top 44% of over 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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This article originally published on Zacks Investment Research (zacks.com).