Nutanix (NTNX) closed the latest trading day at $68.67, indicating a +0.21% change from the previous session's end. The stock exceeded the S&P 500, which registered a gain of 0.15% for the day. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.09%.
Shares of the enterprise cloud platform services provider have depreciated by 1.83% over the course of the past month, underperforming the Computer and Technology sector's gain of 1.15% and the S&P 500's loss of 0.21%.
Analysts and investors alike will be keeping a close eye on the performance of Nutanix in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.38, signifying a 35.71% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $625.73 million, up 19.28% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.62 per share and a revenue of $2.51 billion, signifying shifts of +23.66% and +16.82%, respectively, from the last year.
Any recent changes to analyst estimates for Nutanix should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Nutanix boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Nutanix is currently exchanging hands at a Forward P/E ratio of 42.38. This signifies a premium in comparison to the average Forward P/E of 16.78 for its industry.
It is also worth noting that NTNX currently has a PEG ratio of 2.09. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computers - IT Services was holding an average PEG ratio of 1.8 at yesterday's closing price.
The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 153, this industry ranks in the bottom 39% of all industries, numbering over 250.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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This article originally published on Zacks Investment Research (zacks.com).
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