Extreme Networks (EXTR) Registers a Bigger Fall Than the Market: Important Facts to Note
Extreme Networks (EXTR) closed the most recent trading day at $20.88, moving -1.88% from the previous trading session. This move lagged the S&P 500's daily loss of 1.26%. Meanwhile, the Dow experienced a drop of 0.86%, and the technology-dominated Nasdaq saw a decrease of 1.54%.
The the stock of maker of network infrastructure equipment has fallen by 7.92% in the past month, lagging the Computer and Technology sector's loss of 2.39% and the S&P 500's loss of 3.67%.
The investment community will be paying close attention to the earnings performance of Extreme Networks in its upcoming release. The company is slated to reveal its earnings on November 1, 2023. In that report, analysts expect Extreme Networks to post earnings of $0.32 per share. This would mark year-over-year growth of 60%. Alongside, our most recent consensus estimate is anticipating revenue of $349.95 million, indicating a 17.56% upward movement from the same quarter last year.
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.
It's also important for investors to be aware of any recent modifications to analyst estimates for Extreme Networks. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Extreme Networks is currently a Zacks Rank #3 (Hold).
Looking at its valuation, Extreme Networks is holding a Forward P/E ratio of 13.77. This valuation marks a premium compared to its industry's average Forward P/E of 13.17.
Meanwhile, EXTR's PEG ratio is currently 0.81. 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. The Computer - Networking industry currently had an average PEG ratio of 0.81 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 185, placing it within the bottom 27% of over 250 industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report
