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Can Nutanix Stock Sustain Strong Growth Momentum?

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Stock price gained 115%

Nutanix’s (NTNX) share price continues to witness robust growth. In the last year, its stock has soared nearly 115.4%, whereas YTD (year-to-date), it’s risen 31.6%. The stock is trading ~114.7% higher than its 52-week low of nearly $21.6 and almost 28.4% lower than its 52-week high of $64.87.

The NASDAQ (NDAQ) has generated a return of 17.26% YTD, lower than the growth of Nutanix shares in the same period. The company’s 200-day moving average is $47.93, below its current price of $49.65, indicating that its stock is maintaining an upward trend.

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Factors influencing the stock price

Nutanix continues to gain from the ongoing shifting of workloads and applications of different enterprises from on-premises platforms to the cloud. Moreover, huge investments in software and different platforms have driven the company’s business. The launches of new products, which include Frame, Beam, Era, and Sherlock, may not only boost its product portfolio but also generate large orders. Its book-to-bill ratio of above 1 clearly indicates a strong order backlog.

Stock price movements of peers

In the last year, other tech players operating in the same space, such as NetApp (NTAP), Splunk (SPLK), and Tableau Software (DATA), have also witnessed strong upside stock movements. During the period, the shares of all three companies improved nearly 103.4%, 77.8%, and 47.8%, respectively. In the chart above, we can see the stock returns of Nutanix’s peers in the last year. In the period, Nutanix stock has produced the highest returns compared to its peers.

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