Extreme Networks (EXTR) Stock Dips While Market Gains: Key Facts
Extreme Networks (EXTR) closed the most recent trading day at $17.89, moving -0.61% from the previous trading session. This move lagged the S&P 500's daily gain of 0.45%.
Market participants will be closely following the financial results of Extreme Networks in its upcoming release. In that report, analysts expect Extreme Networks to post earnings of $0.30 per share. This would mark year-over-year growth of 11.11%. At the same time, our most recent consensus estimate is projecting a revenue of $323.3 million, reflecting a 1.55% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.40 per share and a revenue of $1.38 billion, indicating changes of +28.44% and +5.31%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Extreme Networks. Such recent modifications usually signify the changing landscape of near-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 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 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 past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Extreme Networks holds a Zacks Rank of #4 (Sell).
With respect to valuation, Extreme Networks is currently being traded at a Forward P/E ratio of 12.86. This represents a premium compared to its industry's average Forward P/E of 12.65.
We can also see that EXTR currently has a PEG ratio of 0.76. 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. 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. At present, this industry carries a Zacks Industry Rank of 213, placing it within the bottom 16% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report
