Extreme Networks (EXTR) Stock Sinks As Market Gains: What You Should Know
Extreme Networks (EXTR) closed the most recent trading day at $24.22, moving -0.86% from the previous trading session. This change lagged the S&P 500's daily gain of 0.84%. At the same time, the Dow added 0.96%, and the tech-heavy Nasdaq gained 0.81%.
Heading into today, shares of the maker of network infrastructure equipment had lost 16.25% over the past month, lagging the Computer and Technology sector's gain of 2.69% and the S&P 500's gain of 0.19% in that time.
Extreme Networks will be looking to display strength as it nears 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, 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.
Any recent changes to analyst estimates for Extreme Networks should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
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 currently has a Zacks Rank of #2 (Buy).
In terms of valuation, Extreme Networks is currently trading at a Forward P/E ratio of 15.81. This represents a premium compared to its industry's average Forward P/E of 15.6.
It is also worth noting that EXTR currently has a PEG ratio of 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 industry currently has a Zacks Industry Rank of 40, which puts it in the top 16% of all 250+ industries.
The Zacks Industry Rank includes is listed in order 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.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report
