Extreme Networks (EXTR) Gains As Market Dips: What You Should Know
Extreme Networks (EXTR) closed the most recent trading day at $17.81, moving +0.96% from the previous trading session. This move outpaced the S&P 500's daily loss of 0.57%. Elsewhere, the Dow gained 0.07%, while the tech-heavy Nasdaq lost 1.64%.
The maker of network infrastructure equipment's stock has climbed by 8.22% in the past month, exceeding the Computer and Technology sector's gain of 4.46% and the S&P 500's gain of 4%.
The upcoming earnings release of Extreme Networks will be of great interest to investors. The company's earnings per share (EPS) are projected to be $0.30, reflecting a 11.11% increase from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $323.3 million, indicating a 1.55% upward movement from the same quarter last year.
EXTR's full-year Zacks Consensus Estimates are calling for earnings of $1.40 per share and revenue of $1.38 billion. These results would represent year-over-year changes of +28.44% and +5.31%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Extreme Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Extreme Networks presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Extreme Networks is currently exchanging hands at a Forward P/E ratio of 12.6. This denotes no noticeable deviation relative to the industry's average Forward P/E of 12.6.
Investors should also note that EXTR has a PEG ratio of 0.74 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Networking industry currently had an average PEG ratio of 0.74 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 205, putting it in the bottom 19% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report
