Extreme Networks (EXTR) Ascends While Market Falls: Some Facts to Note
The most recent trading session ended with Extreme Networks (EXTR) standing at $20.54, reflecting a +1.68% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily loss of 0.48%. Meanwhile, the Dow experienced a drop of 1.12%, and the technology-dominated Nasdaq saw an increase of 0.38%.
Shares of the maker of network infrastructure equipment have depreciated by 17.21% over the course of the past month, underperforming the Computer and Technology sector's loss of 3.16% and the S&P 500's loss of 2.65%.
Analysts and investors alike will be keeping a close eye on the performance of Extreme Networks in its upcoming earnings disclosure. The company's earnings report is set to go public on November 1, 2023. In that report, analysts expect Extreme Networks to post earnings of $0.32 per share. This would mark year-over-year growth of 60%. At the same time, our most recent consensus estimate is projecting a revenue of $349.95 million, reflecting a 17.56% rise from the equivalent quarter last year.
EXTR's full-year Zacks Consensus Estimates are calling for earnings of $1.55 per share and revenue of $1.5 billion. These results would represent year-over-year changes of +42.2% and +14.36%, respectively.
Investors should also pay attention to any latest changes in analyst estimates for Extreme Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
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 last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Currently, Extreme Networks is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Extreme Networks is presently being traded at a Forward P/E ratio of 13.07. This denotes a premium relative to the industry's average Forward P/E of 12.69.
One should further note that EXTR currently holds a PEG ratio of 0.77. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. EXTR's industry had an average PEG ratio of 0.77 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 162, positioning it in the bottom 36% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report
