Extreme Networks (EXTR) Stock Moves -0.29%: What You Should Know
Extreme Networks (EXTR) closed the most recent trading day at $24.24, moving -0.29% from the previous trading session. This change was narrower than the S&P 500's daily loss of 0.94%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq lost 1.53%.
Heading into today, shares of the maker of network infrastructure equipment had lost 13.64% over the past month, lagging the Computer and Technology sector's gain of 3.69% and the S&P 500's gain of 1.85% in that time.
Investors will be hoping for strength from Extreme Networks as it approaches its next earnings release. In that report, analysts expect Extreme Networks to post earnings of $0.32 per share. This would mark year-over-year growth of 60%. Meanwhile, our latest consensus estimate is calling for revenue of $349.95 million, up 17.56% from the prior-year quarter.
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.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about 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.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Extreme Networks currently has a Zacks Rank of #2 (Buy).
Valuation is also important, so investors should note that Extreme Networks has a Forward P/E ratio of 15.73 right now. For comparison, its industry has an average Forward P/E of 15.26, which means Extreme Networks is trading at a premium to the group.
Meanwhile, EXTR's PEG ratio is currently 0.93. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer - Networking industry currently had an average PEG ratio of 0.93 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 32, putting it in the top 13% 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.
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
