Extreme Networks, Inc. (EXTR) Hits Fresh High: Is There Still Room to Run?

A strong stock as of late has been Extreme Networks (EXTR). Shares have been marching higher, with the stock up 20.2% over the past month. The stock hit a new 52-week high of $21.55 in the previous session. Extreme Networks has gained 28.5% since the start of the year compared to the 13.4% move for the Zacks Computer and Technology sector and the 15.5% return for the Zacks Computer - Networking industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on August 6, 2025, Extreme Networks reported EPS of $0.25 versus consensus estimate of $0.22 while it beat the consensus revenue estimate by 2.3%.For the current fiscal year, Extreme Networks is expected to post earnings of $1.02 per share on $1.23 in revenues. This represents a 21.43% change in EPS on a 8.03% change in revenues. For the next fiscal year, the company is expected to earn $1.18 per share on $1.35 in revenues. This represents a year-over-year change of 15.69% and 9.42%, respectively.Valuation MetricsThough Extreme Networks has recently hit a 52-week high, what is next for Extreme Networks? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Extreme Networks has a Value Score of D. The stock's Growth and Momentum Scores are A and C, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 21.1X current fiscal year EPS estimates, which is a premium to the peer industry average of 16.1X. On a trailing cash flow basis, the stock currently trades at 39.1X versus its peer group's average of 12.9X. Additionally, the stock has a PEG ratio of 1.17. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to consider the stock's Zacks Rank, as this is even more important than the company's VGM Score. Fortunately, Extreme Networks currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Extreme Networks fits the bill. Thus, it seems as though Extreme Networks shares could have potential in the weeks and months to come.How Does EXTR Stack Up to the Competition?Shares of EXTR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is NetScout Systems, Inc. (NTCT). NTCT has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of F.Earnings were strong last quarter. NetScout Systems, Inc. beat our consensus estimate by 17.24%, and for the current fiscal year, NTCT is expected to post earnings of $2.35 per share on revenue of $848.33 million.Shares of NetScout Systems, Inc. have gained 15.3% over the past month, and currently trade at a forward P/E of 10.54X and a P/CF of 3.01X.The Computer - Networking industry is in the top 20% of all the industries we have in our universe, so it looks like there are some nice tailwinds for EXTR and NTCT, even beyond their own solid fundamental situation.Quantum Computing Stocks Set To SoarArtificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.Access the Report Free Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Extreme Networks, Inc. (EXTR): Free Stock Analysis Report NetScout Systems, Inc. (NTCT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks