• Nutanix (NTNX) shows strong technical momentum and is trading above all its moving averages.
• NTNX shares set a new 52-week high of $83.14 on Wednesday.
• The stock has gained 29% in the last month and nearly 18% over the past year.
• Fundamentals are solid, with revenue and earnings expected to grow double digits this year and next.

Today’s Featured Stock:

Valued at $21.8 billion, Nutanix (NTNX) provides enterprise cloud operating systems that combine server, storage, virtualization, and networking software into one integrated solution. 

What I’m Watching:

I found today’s Chart of the Day by using Barchart’s powerful screening functions. I sorted for stocks with the highest technical buy signals, superior current momentum in both strength and direction, and a Trend Seeker “buy” signal. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. NTNX checks those boxes. Since the Trend Seeker signaled a buy on May 2, the stock has gained 12.81%.

On the chart, you can note that the stock is trading above all of its daily moving averages and has rising prices on steady volume.

NTNX Price vs. Daily Moving Averages:

Barchart Technical Indicators for Nutanix:

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

When a stock is trading above all of its daily moving averages and closed within 1.58% of its 52-week high, it won’t take much to hit another new high.

• Nutanix has a 100% technical “Buy” signal.
• The stock closed at $81.83 on May 14, within 1.58% of its 52-week high of $83.14.
• NTNX has a Weighted Alpha of +37.02.
• The stock has gained 17.7% over the past year.
• Trend Seeker “Buy” signal intact.
• NTNX is trading above its 20, 50 and 100-day moving averages.
• The stock has made 2 new highs and is up 29% in the last month.
• The 14-day Relative Strength Index is at 74.70%.
• The technical support level is at $78.50.

Follow the Fundamentals:

• $21.8 billion market cap.
• 256.17x trailing price-earnings ratio.
• Revenue is expected to grow 16.83% this year and another 15.55% next year.
• Earnings are estimated to increase 23.78% this year and an additional 15.80% next year.

Analyst and Investor Sentiment on Nutanix:

I don’t buy stocks because everyone else is buying, but I do realize that if major firms and investors are dumping a stock, it’s hard to make money swimming against the tide.

It looks like not only Wall Street analysts, but also many of the popular investing advisory services, are moderately bullish on this stock.

• Wall Street analysts tracked by Barchart issued nine “Strong Buy,” four “Moderate Buy” and one “Hold” opinion on the stock with a price target of $89.46.
• Value Line gives the stock its average rating with a price target of $86.
• CFRA’s MarketScope gives the stock a “Buy” rating with a price target of $92.
• MorningStar thinks the stock is 11% overvalued.
• Of the 570 individual investors following the stock on Motley Fool, 529 think the stock will beat the market, while 41 think it won’t.
• 32,060 investors monitor the stock on Seeking Alpha, which rates the stock a “Hold.”

The Bottom Line:

Currently Nutanix has momentum and support by both the market and individual investors, but it faces competition from rivals VMware (AVGO), Dell (DELL), and Hewlett Packard (HPE).

Additional disclosure: The Barchart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance and reevaluate your stop losses at least on a weekly basis.