Extreme Networks (EXTR) Stock Sinks As Market Gains: What You Should Know
Extreme Networks (EXTR) closed at $27.14 in the latest trading session, marking a -1.13% move from the prior day. This change lagged the S&P 500's 0.18% gain on the day. Meanwhile, the Dow gained 0.33%, and the Nasdaq, a tech-heavy index, lost 0.02%.
Coming into today, shares of the maker of network infrastructure equipment had lost 7.54% in the past month. In that same time, the Computer and Technology sector lost 1.62%, while the S&P 500 lost 1.63%.
Investors will be hoping for strength from Extreme Networks as it approaches its next earnings release. 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.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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.
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 has moved 5.96% higher within the past month. Extreme Networks is currently a Zacks Rank #2 (Buy).
Digging into valuation, Extreme Networks currently has a Forward P/E ratio of 17.06. Its industry sports an average Forward P/E of 16.89, so we one might conclude that Extreme Networks is trading at a premium comparatively.
We can also see that EXTR currently has a PEG ratio of 1. 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. EXTR's industry had an average PEG ratio of 1 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 42, which puts it in the top 17% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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
