In the latest market close, Nutanix (NTNX) reached $71.11, with a -0.84% movement compared to the previous day. The stock's performance was behind the S&P 500's daily loss of 0.61%. Meanwhile, the Dow lost 0.47%, and the Nasdaq, a tech-heavy index, lost 0.64%.

The the stock of enterprise cloud platform services provider has risen by 12.24% in the past month, leading the Computer and Technology sector's gain of 3.03% and the S&P 500's gain of 3.07%.

Market participants will be closely following the financial results of Nutanix in its upcoming release. The company plans to announce its earnings on November 26, 2024. It is anticipated that the company will report an EPS of $0.31, marking a 6.9% rise compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $571.49 million, up 11.83% from the year-ago period.

For the full year, the Zacks Consensus Estimates are projecting earnings of $1.40 per share and revenue of $2.46 billion, which would represent changes of +6.87% and +14.27%, respectively, from the prior year.

Any recent changes to analyst estimates for Nutanix should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Within the past 30 days, our consensus EPS projection remained stagnant. As of now, Nutanix holds a Zacks Rank of #2 (Buy).

In terms of valuation, Nutanix is currently trading at a Forward P/E ratio of 51.09. Its industry sports an average Forward P/E of 29.14, so one might conclude that Nutanix is trading at a premium comparatively.

It's also important to note that NTNX currently trades at a PEG ratio of 2.74. 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 Computers - IT Services industry had an average PEG ratio of 2.99 as trading concluded yesterday.

The Computers - IT Services industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 38, this industry ranks in the top 16% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

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