Nutanix (NTNX) Stock Moves -0.57%: What You Should Know

The latest trading session saw Nutanix (NTNX) ending at $71.45, denoting a -0.57% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 0.74%. Elsewhere, the Dow saw a downswing of 1.53%, while the tech-heavy Nasdaq depreciated by 0.39%.

Shares of the enterprise cloud platform services provider have appreciated by 18.02% over the course of the past month, outperforming the Computer and Technology sector's gain of 10.43% and the S&P 500's gain of 6.06%.

Investors will be eagerly watching for the performance of Nutanix in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 29, 2024. The company is expected to report EPS of $0.17, up 325% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $516.13 million, showing a 15.06% escalation compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.08 per share and revenue of $2.14 billion, indicating changes of +80% and +14.83%, respectively, compared to the previous year.

Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Nutanix. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Nutanix is holding a Zacks Rank of #1 (Strong Buy) right now.

Valuation is also important, so investors should note that Nutanix has a Forward P/E ratio of 66.81 right now. This expresses a premium compared to the average Forward P/E of 26.72 of its industry.

Meanwhile, NTNX's PEG ratio is currently 1.65. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computers - IT Services industry stood at 2.96 at the close of the market yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 150, putting it in the bottom 41% of all 250+ industries.

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

Be sure to use to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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