Extreme Networks (EXTR) Surpasses Market Returns: Some Facts Worth Knowing
Extreme Networks (EXTR) closed the most recent trading day at $16.42, moving +1.17% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.57%. At the same time, the Dow added 0.46%, and the tech-heavy Nasdaq gained 0.75%.
The the stock of maker of network infrastructure equipment has fallen by 8.1% in the past month, lagging the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 3.4%.
Analysts and investors alike will be keeping a close eye on the performance of Extreme Networks in its upcoming earnings disclosure. The company's earnings report is set to go public on January 31, 2024. On that day, Extreme Networks is projected to report earnings of $0.27 per share, which would represent no growth from the prior-year quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.34 per share and revenue of $1.38 billion, which would represent changes of +22.94% and +5.31%, 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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 6.84% lower. Extreme Networks presently features a Zacks Rank of #4 (Sell).
In terms of valuation, Extreme Networks is currently trading at a Forward P/E ratio of 12.16. This represents a discount compared to its industry's average Forward P/E of 12.18.
Investors should also note that EXTR has a PEG ratio of 0.72 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer - Networking industry had an average PEG ratio of 0.72 as trading concluded yesterday.
The Computer - Networking industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 226, placing it within the bottom 11% of over 250 industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report
