Extreme Networks (EXTR) Moves 6.1% Higher: Will This Strength Last?

Extreme Networks (EXTR) shares ended the last trading session 6.1% higher at $9.58. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock’s 6% loss over the past four weeks.

Extreme Networks has launched a suite of new solutions and extended its ExtremeCloud portfolio to include new SD-WAN and AIOps with digital twin capabilities. This, in turn, will deliver secure connectivity at the edge of the network, accelerate cloud deployments and help customers with actionable insights – all from within a single platform. This will simplify network management, augment security and improve application performance with a simple, cost-effective subscription licensing model.

This maker of network infrastructure equipment is expected to post quarterly earnings of $0.15 per share in its upcoming report, which represents a year-over-year change of -21.1%. Revenues are expected to be $270.5 million, down 2.7% from the year-ago quarter.

Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.

For Extreme Networks, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock’s price usually doesn’t keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on EXTR going forward to see if this recent jump can turn into more strength down the road.

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here >>>>

Extreme Networks is part of the Zacks Computer – Networking industry. Digi International (DGII), another stock in the same industry, closed the last trading session 4.5% higher at $24.12. DGII has returned 5.1% in the past month.

For Digi International , the consensus EPS estimate for the upcoming report has remained unchanged over the past month at $0.38. This represents a change of +322.2% from what the company reported a year ago. Digi International currently has a Zacks Rank of #4 (Sell).

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