Nutanix (NTNX) ended the recent trading session at $60.12, demonstrating a -1.38% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.18%. Elsewhere, the Dow lost 0.85%, while the tech-heavy Nasdaq lost 0.06%.
Shares of the enterprise cloud platform services provider have appreciated by 13.03% over the course of the past month, outperforming the Computer and Technology sector's gain of 1.48%, and the S&P 500's gain of 3.33%.
Investors will be eagerly watching for the performance of Nutanix in its upcoming earnings disclosure. The company is expected to report EPS of $0.48, up 29.73% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $737.46 million, showing a 12.89% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.91 per share and revenue of $2.83 billion, indicating changes of +17.9% and +11.57%, respectively, compared to the previous year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Nutanix. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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.
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. Within the past 30 days, our consensus EPS projection has moved 0.41% higher. Right now, Nutanix possesses a Zacks Rank of #2 (Buy).
From a valuation perspective, Nutanix is currently exchanging hands at a Forward P/E ratio of 28.25. This denotes a premium relative to the industry average Forward P/E of 14.29.
Meanwhile, NTNX's PEG ratio is currently 1.76. 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. As of the close of trade yesterday, the Computers - IT Services industry held an average PEG ratio of 1.15.
The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 148, putting it in the bottom 40% of all 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.
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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Nutanix (NTNX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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