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Nutanix (NTNX) Stock Sinks As Market Gains: What You Should Know

Zacks Equity Research
Sonoco (SON) reported earnings 30 days ago. What's next for the stock? We take a look at earnings estimates for some clues.

In the latest trading session, Nutanix (NTNX) closed at $37.62, marking a -0.11% move from the previous day. This change lagged the S&P 500's 0.22% gain on the day. Elsewhere, the Dow gained 0.15%, while the tech-heavy Nasdaq added 0.6%.

Heading into today, shares of the enterprise cloud platform services provider had gained 11.26% over the past month, outpacing the Computer and Technology sector's gain of 4.32% and the S&P 500's gain of 2.39% in that time.

Investors will be hoping for strength from NTNX as it approaches its next earnings release. In that report, analysts expect NTNX to post earnings of -$0.60 per share. This would mark a year-over-year decline of 185.71%. Our most recent consensus estimate is calling for quarterly revenue of $296.48 million, up 2.44% from the year-ago period.

For the full year, our Zacks Consensus Estimates are projecting earnings of -$1.46 per share and revenue of $1.29 billion, which would represent changes of -135.48% and +11.34%, respectively, from the prior year.

It is also important to note the recent changes to analyst estimates for NTNX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.

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. Within the past 30 days, our consensus EPS projection remained stagnant. NTNX currently has a Zacks Rank of #3 (Hold).

The Computers - IT Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 88, putting it in the top 35% 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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