Extreme Networks (EXTR) Sees a More Significant Dip Than Broader Market: Some Facts to Know
Extreme Networks (EXTR) closed the latest trading day at $20.20, indicating a -1.85% change from the previous session's end. The stock trailed the S&P 500, which registered a daily loss of 1.18%. Meanwhile, the Dow experienced a drop of 0.76%, and the technology-dominated Nasdaq saw a decrease of 1.76%.
The maker of network infrastructure equipment's shares have seen a decrease of 15.48% over the last month, not keeping up with the Computer and Technology sector's loss of 2.96% and the S&P 500's loss of 3.35%.
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 November 1, 2023. On that day, Extreme Networks is projected to report earnings of $0.32 per share, which would represent year-over-year growth of 60%. Our most recent consensus estimate is calling for quarterly revenue of $349.95 million, up 17.56% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.55 per share and a revenue of $1.5 billion, representing changes of +42.2% and +14.36%, respectively, from the prior year.
Furthermore, it would be beneficial for investors to monitor any recent shifts in analyst projections for Extreme Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Extreme Networks is currently sporting a Zacks Rank of #3 (Hold).
Investors should also note Extreme Networks's current valuation metrics, including its Forward P/E ratio of 13.32. This valuation marks a premium compared to its industry's average Forward P/E of 12.94.
We can also see that EXTR currently has a PEG ratio of 0.78. 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 0.78 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 39% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
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Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report
