Nutanix’s (NTNX) chart looks bullish, but fundamentals aren’t as strong
Cloud software company Nutanix (Nasdaq: NTNX) has performed better than 92% of stocks over the past year, on a price basis that is. The company scores a 92 on Investor’s Business Daily’s Relative Strength rating and that means it has outperformed all but 8% of stocks on a price basis for the past year.
When we look at the daily chart we see that the stock has jumped sharply since the end of December, and it held up better than most in the fourth quarter. In fact, the stock put in a triple-bottom in the fourth quarter with the stock dropping down to the $35.25 to $35.50 area in October, November, and December. After the lows in October and November, the stock bounced back to the $47 area. In January, the stock broke above the $47 area and has continued higher.
The Tickeron AI Trend Prediction tool generated a bullish signal for Nutanix on February 14. The prediction came with an 81% confidence level and 82% of past predictions have been accurate. The prediction calls for a gain of at least 4% over the next month.
If there is a concern for Nutanix, it is that the stock has been performing better than the company. The company is losing money still and has yet to turn a profit since going public in October 2016. The good news is that the company has seen sales grow by 66% per year over the last three years, so it could soon make a profit. The company is scheduled to report earnings on February 28.
NTNX sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for NTNX moved above the 200-day moving average on October 17, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Stochastic Oscillator suggests the stock price trend may be in a reversal from a downward trend to an upward trend. of 59 cases where NTNX's Stochastic Oscillator exited the oversold zone resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where NTNX advanced for three days, in of 320 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 23, 2024. You may want to consider selling the stock, shorting the stock, or exploring put options on NTNX as a result. In of 90 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for NTNX turned negative on October 21, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where NTNX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
NTNX broke above its upper Bollinger Band on October 10, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for NTNX entered a downward trend on October 08, 2024. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.000) is normal, around the industry mean (30.698). P/E Ratio (0.000) is within average values for comparable stocks, (161.895). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.738). Dividend Yield (0.000) settles around the average of (0.083) among similar stocks. P/S Ratio (8.197) is also within normal values, averaging (55.771).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. NTNX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
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General Information
an operator of enterprise cloud platform that converges traditional silos of server, virtualization and storage into one integrated solution
Industry PackagedSoftware