Extreme Networks (EXTR) Exceeds Market Returns: Some Facts to Consider
The most recent trading session ended with Extreme Networks (EXTR) standing at $16.78, reflecting a +1.94% shift from the previouse trading day's closing. The stock outpaced the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 1.7%.
Heading into today, shares of the maker of network infrastructure equipment had lost 7.16% over the past month, lagging the Computer and Technology sector's gain of 1.98% and the S&P 500's gain of 0.94% in that time.
Market participants will be closely following the financial results of Extreme Networks in its upcoming release. The company plans to announce its earnings on January 31, 2024. The company is forecasted to report an EPS of $0.27, showcasing no movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $295.5 million, down 7.18% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.34 per share and a revenue of $1.35 billion, representing changes of +22.94% and +2.81%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Extreme Networks. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 6.84% lower. Right now, Extreme Networks possesses a Zacks Rank of #4 (Sell).
Looking at its valuation, Extreme Networks is holding a Forward P/E ratio of 12.33. Its industry sports an average Forward P/E of 12.58, so one might conclude that Extreme Networks is trading at a discount comparatively.
We can additionally observe that EXTR currently boasts a PEG ratio of 0.73. 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 0.73 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 165, finds itself in the bottom 35% echelons of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report
