Why Extreme Networks (EXTR) Outpaced the Stock Market Today
Extreme Networks (EXTR) closed the most recent trading day at $11.71, moving +1.04% from the previous trading session. The stock outpaced the S&P 500's daily gain of 0.89%. Meanwhile, the Dow gained 1.03%, and the Nasdaq, a tech-heavy index, added 1.25%.
The maker of network infrastructure equipment's stock has dropped by 2.11% in the past month, falling short of the Computer and Technology sector's gain of 3.77% and the S&P 500's gain of 3.56%.
The investment community will be paying close attention to the earnings performance 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.
For the full year, the Zacks Consensus Estimates project earnings of $0.59 per share and a revenue of $1.13 billion, demonstrating changes of -45.87% and -13.53%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Extreme Networks. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Extreme Networks is carrying a Zacks Rank of #4 (Sell).
Looking at its valuation, Extreme Networks is holding a Forward P/E ratio of 19.81. This indicates a premium in contrast to its industry's Forward P/E of 14.89.
Investors should also note that EXTR has a PEG ratio of 1.17 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. As of the close of trade yesterday, the Computer - Networking industry held an average PEG ratio of 1.17.
The Computer - Networking industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 73, this industry ranks in the top 29% of all industries, numbering over 250.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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Extreme Networks, Inc. (EXTR) : Free Stock Analysis Report
