Our Stock of the Week is Extreme Networks (EXTR). EXTR provides software-driven networking solutions for wired and wireless infrastructure equipment.
EXTR recently posted strong earnings and is now setting up for a breakout. In its most recent quarter revenues rose 28% and EPS improved 70% to $0.17. The company raised its revenue guidance for next quarter to over $200 million from the consensus of $168 million. EPS is now projected to be $0.11 to 0.17 up from $0.08.
Overall the company is looking at eps growth of 52% in the year ahead and trades with a trailing PE of 23.
Technically the stock is consolidating just off its highs after a big move on earnings. As always we would not chase the stock the stock on Monday morning but would look for a breakout move on higher volume or a low volume pullback above the $10 level.
This post is for educational purposes only! This is not advice or a recommendation. We do not give investment advice. Do not act on this post. Do not buy, sell or trade the stocks mentioned herein. We WILL actively trade this stock differently than discussed herein. We will sell into strength, and will buy or sell at any time for any reason. We will actively trade into any unusual activity. At the time of this post, principals, employees and affiliates of Shark Investing, Inc. and/or principals, employees and affiliates of Shark Asset Management, Inc. (“SAMI”), directly or indirectly, controlled investment and/or trading accounts containing no positions in EXTR. To accommodate the objectives of these investing and/or trading accounts, the trading in these shares will be contrary to and/or inconsistent with the information contained in this posting.