Why the Market Dipped But Extreme Networks (EXTR) Gained Today
The latest trading session saw Extreme Networks (EXTR) ending at $16.14, denoting a +0.19% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.39% for the day. Meanwhile, the Dow experienced a drop of 0.19%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
Shares of the maker of network infrastructure equipment witnessed a loss of 4.96% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.19% and the S&P 500's gain of 5.08%.
Analysts and investors alike will be keeping a close eye on the performance of Extreme Networks in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.30, signifying a 11.11% increase compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $323.3 million, reflecting a 1.55% rise from the equivalent quarter last year.
EXTR's full-year Zacks Consensus Estimates are calling for earnings of $1.40 per share and revenue of $1.38 billion. These results would represent year-over-year changes of +28.44% and +5.31%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Extreme Networks. These recent revisions tend to reflect the evolving nature of short-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
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, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Extreme Networks presently features a Zacks Rank of #4 (Sell).
From a valuation perspective, Extreme Networks is currently exchanging hands at a Forward P/E ratio of 11.51. Its industry sports an average Forward P/E of 11.51, so one might conclude that Extreme Networks is trading at no noticeable deviation comparatively.
It's also important to note that EXTR currently trades at a PEG ratio of 0.68. 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 was holding an average PEG ratio of 0.68 at yesterday's closing price.
The Computer - Networking industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 213, positioning it in the bottom 16% of all 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
