Should you consider NASDAQ:EXTR for growth investing?

In this article we will dive into EXTREME NETWORKS INC (NASDAQ:EXTR) as a possible candidate for growth investing. Investors should always do their own research, but we noticed EXTREME NETWORKS INC showing up in our CANSLIM growth screen, which makes it worth to investigate a bit more.

Some of the canslim metrics of NASDAQ:EXTR highlighted

• With a favorable trend in its quarter-to-quarter (Q2Q) earnings per share (EPS), EXTREME NETWORKS INC highlights its ability to generate increasing profitability, showcasing a 120.0% growth.
• The q2q revenue growth of 30.81% of EXTREME NETWORKS INC highlights the company's ability to generate incremental revenue and suggests positive market demand for its products or services.
• Over the past 3 years, EXTREME NETWORKS INC has demonstrated 122.0% growth in EPS, signifying its positive financial trajectory and potential for future profitability.
• EXTREME NETWORKS INC exhibits a strong Return on Equity (ROE) of 66.87%, indicating the company's ability to generate solid returns on shareholder investments. This metric reflects the company's efficient utilization of equity capital and its profitability.
• The Relative Strength (RS) of EXTREME NETWORKS INC has consistently been strong, with a current 95.0 rating. This indicates the stock's ability to exhibit relative price outperformance and reflects its competitive strength. EXTREME NETWORKS INC demonstrates promising potential for sustained price momentum.
• EXTREME NETWORKS INC exhibits a favorable Debt-to-Equity ratio at 1.61. This highlights the company's ability to limit excessive debt levels and maintain a strong equity base, demonstrating its financial stability and risk management practices.
• With institutional shareholders at 83.01%, EXTREME NETWORKS INC demonstrates a healthy ownership distribution. This reflects a mix of institutional and individual investors, creating a market environment that may foster increased trading activity and price discovery.

Insights from Technical Analysis

ChartMill assigns a proprietary Technical Rating to each stock. The score is computed daily by evaluating various technical indicators and properties. The score ranges from 0 to 10.

We assign a technical rating of 3 out of 10 to EXTR. Although EXTR is scoring some points because its good overall performance in the market in the past year, recent evolutions are not that positive. Both the medium and short term picture give negative signs.

• Looking at the yearly performance, EXTR did better than 95% of all other stocks. We also observe that the gains produced by EXTR over the past year are nicely spread over this period.
• EXTR is one of the better performing stocks in the Communications Equipment industry, it outperforms 96% of 60 stocks in the same industry.
• In the last month EXTR has a been trading in the 21.94 - 25.73 range, which is quite wide. It is currently trading in the middle of this range where prices have been consolidating recently, this may present a good entry opportunity, but some resistance may be present above.
• The long term trend is neutral, but the short term trend is negative. Better to stay away from this!
• EXTR is currently trading in the middle of its 52 week range. The S&P500 Index however is trading in the upper part of its 52 week range, so EXTR is lagging the market slightly.

For an up to date full technical analysis you can check the technical report of EXTR

How does the complete fundamental picture look for NASDAQ:EXTR?

ChartMill employs a sophisticated system to assign a Fundamental Rating to every stock in its analysis. This rating, which ranges from 0 to 10, is determined by carefully assessing multiple fundamental indicators and properties.

Overall EXTR gets a fundamental rating of 6 out of 10. We evaluated EXTR against 60 industry peers in the Communications Equipment industry. While EXTR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. EXTR is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, EXTR could be worth investigating further for growth investing!.

Check the latest full fundamental report of EXTR for a complete fundamental analysis.

Our CANSLIM screen will find you more ideas suited for growth investing.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.