(EXTR) Extreme Networks - Ratings and Ratios

Extreme Networks Inc (NASDAQ:EXTR) is a leading provider of software-driven networking solutions that enable organizations to simplify and secure their networks. The companys comprehensive portfolio includes wired, wireless, and software-defined wide area-network infrastructure equipment, as well as cloud-native platforms and applications for service providers.

The companys flagship product, ExtremeCloud IQ, is a cloud-based network management solution that leverages machine learning and artificial intelligence to provide advanced visibility and control over users, devices, and applications. This solution is complemented by a range of other products, including ExtremeSwitching, ExtremeCloud SD-WAN, and data center switches and routers, which cater to diverse customer needs across various industries, including healthcare, education, government, manufacturing, retail, and hospitality.

From a market perspective, Extreme Networks operates in the highly competitive communications equipment industry, where it competes with other major players. The companys products are sold through a variety of channels, including distributors, resellers, and field sales organizations, allowing it to maintain a strong presence in the market. With its headquarters in Morrisville, North Carolina, Extreme Networks has established itself as a significant player in the US technology sector.

Analyzing the and , we observe that the stock has been trending upwards, with its last price at $16.70, above its 20-day SMA of $16.24. The 50-day SMA is $14.22, and the 200-day SMA is $15.35, indicating a potential bullish trend. Additionally, the ATR of 0.44 (2.62%) suggests moderate volatility. The companys market capitalization stands at $2242.55M USD, with a forward P/E ratio of 17.64, indicating that the stock may be undervalued. However, the negative RoE of -119.10 raises concerns about the companys profitability.

Based on the analysis of and , our forecast suggests that EXTR may continue its upward trend, driven by its strong product portfolio and growing demand for software-driven networking solutions. However, investors should exercise caution due to the companys negative RoE and moderate volatility. A potential entry point could be around $16.00-$16.50, with a target price of $19.00-$20.00 in the medium term, contingent on the companys ability to improve its profitability and maintain its market momentum.