In the latest trading session, Nutanix (NTNX) closed at $47.53, marking a +2.57% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.07%. At the same time, the Dow added 0.32%, and the tech-heavy Nasdaq lost 0.51%.
The enterprise cloud platform services provider's shares have seen an increase of 15.7% over the last month, surpassing the Computer and Technology sector's gain of 12.26% and the S&P 500's gain of 5.58%.
The investment community will be paying close attention to the earnings performance of Nutanix in its upcoming release. The company is slated to reveal its earnings on May 27, 2026. The company is predicted to post an EPS of $0.35, indicating a 16.67% decline compared to the equivalent quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $686 million, indicating a 7.36% increase compared to the same quarter of the previous year.
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 take note of any recent adjustments to analyst estimates for Nutanix. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Right now, Nutanix possesses a Zacks Rank of #3 (Hold).
From a valuation perspective, Nutanix is currently exchanging hands at a Forward P/E ratio of 25.62. This denotes a premium relative to the industry average Forward P/E of 13.5.
It's also important to note that NTNX currently trades at a PEG ratio of 1.59. 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. The Computers - IT Services industry had an average PEG ratio of 0.97 as trading concluded yesterday.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 101, placing it within the top 42% of over 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.
To follow NTNX in the coming trading sessions, be sure to utilize Zacks.com.
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This article originally published on Zacks Investment Research (zacks.com).