Extreme Networks (EXTR) Outpaces Stock Market Gains: What You Should Know
In the latest trading session, Extreme Networks (EXTR) closed at $25.64, marking a +0.23% move from the previous day. This move outpaced the S&P 500's daily gain of 0.14%. At the same time, the Dow added 0.22%, and the tech-heavy Nasdaq gained 0.09%.
Heading into today, shares of the maker of network infrastructure equipment had lost 19.33% over the past month, lagging the Computer and Technology sector's gain of 0.07% and the S&P 500's loss of 1.27% in that time.
Extreme Networks will be looking to display strength as it nears its next earnings release. On that day, Extreme Networks is projected to report earnings of $0.32 per share, which would represent year-over-year growth of 60%. Meanwhile, our latest consensus estimate is calling for revenue of $349.95 million, up 17.56% from the prior-year quarter.
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 note any recent changes to analyst estimates for Extreme Networks. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Extreme Networks is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, Extreme Networks is currently trading at a Forward P/E ratio of 16.56. For comparison, its industry has an average Forward P/E of 16.14, which means Extreme Networks is trading at a premium to the group.
Investors should also note that EXTR has a PEG ratio of 0.97 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer - Networking stocks are, on average, holding a PEG ratio of 0.97 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 48, putting it in the top 20% 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.
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
