Nutanix (NTNX) Surpasses Market Returns: Some Facts Worth Knowing

Nutanix (NTNX) closed the most recent trading day at $76.80, moving +1.82% from the previous trading session. The stock outperformed the S&P 500, which registered a daily gain of 0.83%. On the other hand, the Dow registered a gain of 0.77%, and the technology-centric Nasdaq increased by 1.02%.

Heading into today, shares of the enterprise cloud platform services provider had lost 2.22% over the past month, lagging the Computer and Technology sector's gain of 8.25% and the S&P 500's gain of 4.99%.

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Analysts and investors alike will be keeping a close eye on the performance of Nutanix in its upcoming earnings disclosure. On that day, Nutanix is projected to report earnings of $0.32 per share, which would represent year-over-year growth of 18.52%. 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 annual period, the Zacks Consensus Estimates anticipate earnings of $1.74 per share and a revenue of $2.53 billion, signifying shifts of +32.82% and +17.58%, respectively, from the last year.

Investors should also note any recent changes to analyst estimates for Nutanix. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. Over the past month, there's been a 0.21% rise in the Zacks Consensus EPS estimate. At present, Nutanix boasts a Zacks Rank of #3 (Hold).

Looking at its valuation, Nutanix is holding a Forward P/E ratio of 43.45. This valuation marks a premium compared to its industry average Forward P/E of 20.16.

We can additionally observe that NTNX currently boasts a PEG ratio of 2.14. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NTNX's industry had an average PEG ratio of 2.14 as of yesterday's close.

The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 53, placing it within the top 22% of over 250 industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.

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This article originally published on Zacks Investment Research (zacks.com).

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