Extreme Networks (EXTR) Falls More Steeply Than Broader Market: What Investors Need to Know
In the latest market close, Extreme Networks (EXTR) reached $11.45, with a -1.89% movement compared to the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.28%. Meanwhile, the Dow lost 0.08%, and the Nasdaq, a tech-heavy index, lost 0.42%.
The the stock of maker of network infrastructure equipment has fallen by 7.01% in the past month, lagging the Computer and Technology sector's gain of 3.64% and the S&P 500's gain of 2.67%.
The upcoming earnings release of Extreme Networks will be of great interest to investors. The company is forecasted to report an EPS of -$0.17, showcasing a 158.62% downward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $207.8 million, down 37.51% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $0.59 per share and revenue of $1.13 billion. These totals would mark changes of -45.87% and -13.53%, respectively, from last year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Extreme Networks. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
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 remained stagnant. Extreme Networks is holding a Zacks Rank of #4 (Sell) right now.
From a valuation perspective, Extreme Networks is currently exchanging hands at a Forward P/E ratio of 19.95. Its industry sports an average Forward P/E of 15.24, so one might conclude that Extreme Networks is trading at a premium comparatively.
It is also worth noting that EXTR currently has a PEG ratio of 1.17. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer - Networking industry was having an average PEG ratio of 1.17.
The Computer - Networking industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 73, finds itself in the top 29% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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
