Extreme Networks (EXTR) Laps the Stock Market: Here's Why
Extreme Networks (EXTR) closed the latest trading day at $16.90, indicating a +0.66% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.53%. Elsewhere, the Dow saw an upswing of 0.64%, while the tech-heavy Nasdaq appreciated by 0.19%.
Shares of the maker of network infrastructure equipment have depreciated by 5.3% over the course of the past month, underperforming the Computer and Technology sector's gain of 5.21% and the S&P 500's gain of 2.48%.
Investors will be eagerly watching for the performance of Extreme Networks in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on January 31, 2024. The company's earnings per share (EPS) are projected to be $0.27, reflecting no change from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $295.5 million, down 7.18% from the prior-year quarter.
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.
Investors might also notice recent changes to analyst estimates for Extreme Networks. Such recent modifications usually signify the changing landscape of 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. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 6.84% downward. Extreme Networks presently features a Zacks Rank of #4 (Sell).
Looking at its valuation, Extreme Networks is holding a Forward P/E ratio of 12.58. For comparison, its industry has an average Forward P/E of 12.89, which means Extreme Networks is trading at a discount to the group.
It is also worth noting that EXTR currently has a PEG ratio of 0.74. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer - Networking stocks are, on average, holding a PEG ratio of 0.74 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 166, positioning it in the bottom 35% 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.
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
