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Nutanix (NTNX) closed at $73.76 in the latest trading session, marking a +2.29% move from the prior day. This change outpaced the S&P 500’s 1.47% gain on the day. At the same time, the Dow added 1.34%, and the tech-heavy Nasdaq gained 1.95%.
Shares of the enterprise cloud platform services provider have depreciated by 6.11% over the course of the past month, underperforming the Computer and Technology sector’s gain of 3.41%, and the S&P 500’s gain of 0.64%.
The upcoming earnings release of Nutanix will be of great interest to investors. The company is forecasted to report an EPS of $0.31, showcasing a 14.81% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $642.3 million, up 17.22% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $1.73 per share and a revenue of $2.53 billion, demonstrating changes of +32.06% and 0%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Nutanix. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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. The Zacks Consensus EPS estimate has moved 1.69% lower within the past month. As of now, Nutanix holds a Zacks Rank of #3 (Hold).
In terms of valuation, Nutanix is currently trading at a Forward P/E ratio of 38.71. This denotes a premium relative to the industry average Forward P/E of 17.34.
Investors should also note that NTNX has a PEG ratio of 1.91 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company’s expected earnings growth trajectory. Computers – IT Services stocks are, on average, holding a PEG ratio of 1.83 based on yesterday’s closing prices.
The Computers – IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 145, this industry ranks in the bottom 42% of all industries, numbering over 250.
