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Nutanix (NTNX) Rises As Market Takes a Dip: Key Facts

Nutanix (NTNX) Rises As Market Takes a Dip: Key Facts
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The most recent trading session ended with Nutanix (NTNX) standing at $47.46, reflecting a +1.02% shift from the previouse trading day’s closing. This change outpaced the S&P 500’s 0.77% loss on the day. Elsewhere, the Dow saw a downswing of 0.6%, while the tech-heavy Nasdaq depreciated by 1.05%.

The the stock of enterprise cloud platform services provider has fallen by 20.92% in the past month, lagging the Computer and Technology sector’s loss of 12.91% and the S&P 500’s loss of 5.85%.

Market participants will be closely following the financial results of Nutanix in its upcoming release. The company plans to announce its earnings on August 28, 2024. It is anticipated that the company will report an EPS of $0.19, marking a 20.83% fall compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $537.12 million, reflecting an 8.68% rise from the equivalent quarter last year.

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. Hence, positive alterations in estimates signify analyst optimism regarding 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.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there’s been no change in the Zacks Consensus EPS estimate. As of now, Nutanix holds a Zacks Rank of #3 (Hold).

Looking at valuation, Nutanix is presently trading at a Forward P/E ratio of 34.88. Its industry sports an average Forward P/E of 26.8, so one might conclude that Nutanix is trading at a premium comparatively.

It is also worth noting that NTNX currently has a PEG ratio of 0.86. 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. The Computers – IT Services industry had an average PEG ratio of 3.12 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 97, placing it within the top 39% of over 250 industries.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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https://finance.yahoo.com/news/nutanix-ntnx-rises-market-takes-214516398.html

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