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Is EXTREME NETWORKS INC (NASDAQ:EXTR) suited for growth investing?

By Mill Chart

Last update: Aug 28, 2023

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

  • The quarterly earnings of EXTREME NETWORKS INC have shown a 120.0% increase compared to the previous quarter, as revealed in the recent financial report. This growth signifies positive momentum in the company's financials, pointing towards a promising upward trend
  • EXTREME NETWORKS INC has demonstrated strong q2q revenue growth of 30.81%, suggesting a favorable trend in the company's financials and indicating the potential for continued expansion.
  • The EPS of EXTREME NETWORKS INC has shown consistent growth over a 3-year period, indicating the company's ability to generate increasing earnings over time.
  • With a favorable Return on Equity (ROE) of 66.87%, EXTREME NETWORKS INC demonstrates its ability to deliver attractive returns for shareholders. This metric highlights the company's effective management of assets and its profitability.
  • EXTREME NETWORKS INC has exhibited strong Relative Strength(RS) in recent periods, with a current 97.41 rating. This indicates the stock's ability to outperform the broader market and reflects its competitive position. EXTREME NETWORKS INC shows promising potential for continued 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.
  • EXTREME NETWORKS INC exhibits a favorable ownership structure, with an institutional shareholder ownership of 83.4%. This signifies a diverse investor base, which can contribute to a more stable and efficient market for the stock.

Technical Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Technical Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous technical indicators and properties.

Overall EXTR gets a technical rating of 6 out of 10. In the last year, EXTR was one of the better performers, although we are getting mixed signals now in both the short and medium term time frames.

  • Looking at the yearly performance, EXTR did better than 97% 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 part of the Communications Equipment industry. There are 60 other stocks in this industry. EXTR outperforms 96% of them.
  • 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.

Our latest full technical report of EXTR contains the most current technical analsysis.

What is the full fundamental picture of NASDAQ:EXTR telling us.

Every day ChartMill assigns a Fundamental Rating to every stock. The score ranges from 0 to 10 and is determined by evaluating multiple fundamental indicators and properties.

We assign a fundamental rating of 6 out of 10 to EXTR. EXTR was compared to 60 industry peers in the Communications Equipment industry. EXTR scores excellent on profitability, but there are some minor concerns on its financial health. EXTR is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make EXTR suitable 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.


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.



NASDAQ:EXTR (12/8/2023, 7:00:02 PM)

After market: 17.1 +0.09 (+0.53%)


+0.68 (+4.16%)


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