Extreme Networks (EXTR) Stock Moves -0.66%: What You Should Know
Extreme Networks (EXTR) closed the most recent trading day at $24.16, moving -0.66% from the previous trading session. This move was narrower than the S&P 500's daily loss of 1.47%. Meanwhile, the Dow lost 1.14%, and the Nasdaq, a tech-heavy index, lost 1.57%.
Coming into today, shares of the maker of network infrastructure equipment had lost 3.84% in the past month. In that same time, the Computer and Technology sector lost 1.46%, while the S&P 500 lost 1.43%.
Wall Street will be looking for positivity from Extreme Networks as it approaches its next earnings report date. 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, the Zacks Consensus Estimate for revenue is projecting net sales of $349.95 million, up 17.56% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $1.55 per share and revenue of $1.5 billion, which would represent changes of +42.2% and +14.36%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Extreme Networks. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Extreme Networks is holding a Zacks Rank of #2 (Buy) right now.
Investors should also note Extreme Networks's current valuation metrics, including its Forward P/E ratio of 15.74. This represents a premium compared to its industry's average Forward P/E of 14.54.
Investors should also note that EXTR has a PEG ratio of 0.93 right now. 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. Computer - Networking stocks are, on average, holding a PEG ratio of 0.93 based on yesterday's closing prices.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report
