Here's Why Extreme Networks (EXTR) Gained But Lagged the Market Today
Extreme Networks (EXTR) closed the most recent trading day at $17.73, moving +0.51% from the previous trading session. The stock trailed the S&P 500, which registered a daily gain of 1.03%. Elsewhere, the Dow gained 0.87%, while the tech-heavy Nasdaq added 1.26%.
Prior to today's trading, shares of the maker of network infrastructure equipment had gained 7.69% over the past month. This has outpaced the Computer and Technology sector's gain of 2.42% and the S&P 500's gain of 3.01% in that time.
The investment community will be closely monitoring the performance of Extreme Networks in its forthcoming earnings report. The company is expected to report EPS of $0.30, up 11.11% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $323.3 million, up 1.55% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.40 per share and a revenue of $1.38 billion, representing changes of +28.44% and +5.31%, respectively, from the prior year.
Investors might also notice recent changes to analyst estimates for Extreme Networks. Recent revisions tend to reflect the latest 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 demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, there's been no change in the Zacks Consensus EPS estimate. Currently, Extreme Networks is carrying a Zacks Rank of #4 (Sell).
Investors should also note Extreme Networks's current valuation metrics, including its Forward P/E ratio of 12.6. Its industry sports an average Forward P/E of 12.6, so one might conclude that Extreme Networks is trading at no noticeable deviation comparatively.
Investors should also note that EXTR has a PEG ratio of 0.74 right now. 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 0.74 as of yesterday's close.
The Computer - Networking industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 235, placing it within the bottom 7% of over 250 industries.
The Zacks Industry Rank is ordered 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.
To follow EXTR in the coming trading sessions, be sure to utilize Zacks.com.
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Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report
