Nutanix (NTNX) closed the latest trading day at $70.28, indicating a -1.83% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 0.27%. At the same time, the Dow lost 0.51%, and the tech-heavy Nasdaq gained 0.03%.
Coming into today, shares of the enterprise cloud platform services provider had gained 13.55% in the past month. In that same time, the Computer and Technology sector gained 1.69%, while the S&P 500 gained 4.27%.
The investment community will be closely monitoring the performance of Nutanix in its forthcoming earnings report. The company is scheduled to release its earnings on February 26, 2025. It is anticipated that the company will report an EPS of $0.47, marking a 2.17% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $641.76 million, up 13.54% from the year-ago period.
NTNX's full-year Zacks Consensus Estimates are calling for earnings of $1.49 per share and revenue of $2.46 billion. These results would represent year-over-year changes of +13.74% and +14.5%, respectively.
Investors should also note any 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 company's business outlook.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Nutanix possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Nutanix is presently being traded at a Forward P/E ratio of 48.2. Its industry sports an average Forward P/E of 29.8, so one might conclude that Nutanix is trading at a premium comparatively.
One should further note that NTNX currently holds a PEG ratio of 2.43. 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. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.65 based on yesterday's closing prices.
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 59, placing it within the top 24% 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.
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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