Nutanix (NTNX) closed the most recent trading day at $72.07, moving -0.18% from the previous trading session. This change lagged the S&P 500's 0.24% gain on the day. Elsewhere, the Dow saw an upswing of 0.16%, while the tech-heavy Nasdaq appreciated by 0.08%.

The enterprise cloud platform services provider's shares have seen an increase of 10.33% over the last month, surpassing the Computer and Technology sector's gain of 1.76% and the S&P 500's gain of 2.37%.

The investment community will be paying close attention to the earnings performance of Nutanix in its upcoming release. The company is slated to reveal its earnings on February 26, 2025. The company's upcoming EPS is projected at $0.47, signifying a 2.17% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $641.76 million, indicating a 13.54% increase compared to the same quarter of the previous year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.49 per share and a revenue of $2.46 billion, representing changes of +13.74% and +14.5%, respectively, from the prior year.

Investors should also take note of any recent adjustments to analyst estimates for Nutanix. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

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.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Nutanix is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Nutanix has a Forward P/E ratio of 48.61 right now. This represents a premium compared to its industry's average Forward P/E of 29.05.

Meanwhile, NTNX's PEG ratio is currently 2.45. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computers - IT Services stocks are, on average, holding a PEG ratio of 2.61 based on yesterday's closing prices.

The Computers - IT Services industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 59, positioning it in the top 24% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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