Extreme Networks (EXTR) Stock Falls Amid Market Uptick: What Investors Need to Know
Extreme Networks (EXTR) closed the latest trading day at $16.14, indicating a -1.71% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.38%. Meanwhile, the Dow gained 1.47%, and the Nasdaq, a tech-heavy index, lost 0.23%.
The the stock of maker of network infrastructure equipment has fallen by 8.06% in the past month, lagging the Computer and Technology sector's gain of 14.04% and the S&P 500's gain of 10.72%.
Analysts and investors alike will be keeping a close eye on the performance of Extreme Networks in its upcoming earnings disclosure. The company is forecasted to report an EPS of $0.30, showcasing a 11.11% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $323.3 million, indicating a 1.55% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.40 per share and revenue of $1.38 billion. These totals would mark changes of +28.44% and +5.31%, respectively, from last year.
Investors might also notice recent changes to analyst estimates for Extreme Networks. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 17.75% lower. As of now, Extreme Networks holds a Zacks Rank of #4 (Sell).
Valuation is also important, so investors should note that Extreme Networks has a Forward P/E ratio of 11.73 right now. This denotes no noticeable deviation relative to the industry's average Forward P/E of 11.73.
Investors should also note that EXTR has a PEG ratio of 0.69 right now. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer - Networking industry had an average PEG ratio of 0.69 as trading concluded yesterday.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 182, this industry ranks in the bottom 28% of all industries, numbering over 250.
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.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
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Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report
