Extreme Networks (EXTR) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest trading session, Extreme Networks (EXTR) closed at $12.64, marking a -0.16% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.52%. Meanwhile, the Dow gained 0.12%, and the Nasdaq, a tech-heavy index, added 0.9%.
The maker of network infrastructure equipment's stock has dropped by 6.29% in the past month, falling short of the Computer and Technology sector's gain of 1.9% and the S&P 500's gain of 3.85%.
Market participants will be closely following the financial results of Extreme Networks in its upcoming release. The company is forecasted to report an EPS of -$0.17, showcasing a 158.62% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $207.8 million, down 37.51% from the year-ago period.
EXTR's full-year Zacks Consensus Estimates are calling for earnings of $0.59 per share and revenue of $1.13 billion. These results would represent year-over-year changes of -45.87% and -13.53%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Extreme Networks. Recent revisions tend to reflect the latest 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. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 81.36% lower. At present, Extreme Networks boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Extreme Networks is currently trading at a Forward P/E ratio of 21.64. This expresses a premium compared to the average Forward P/E of 14.09 of its industry.
We can additionally observe that EXTR currently boasts a PEG ratio of 1.27. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer - Networking industry currently had an average PEG ratio of 1.27 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 87, this industry ranks in the top 35% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained 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
