PreMarket Prep Stock Of The Day: Nutanix

If and when the beaten-down growth sector turns around, Sean Udall, CIO Of Quantum Trading Strategies has an issue to put on your watchlist: the cloud software company Nutanix Inc NTNX.

Nutanix's Fall From Grace: Unlike several growth tech companies that peaked in 2021, Nutanix made its all-time high in June 2018 at $64.87. During the meltdown in March 2020, the issue bottomed at $11.31. The rebound off that high ended in September at $44.50.

In Friday's session, the issue made a low for the recent decline at $28.16 and ultimately ended the session at $29.04. 

What To Like About Nutanix: Udall started out by describing the issue as having the “safest software in tech, tons of value and a $1-billion investment from Bain Capital.”

The last few quarters have been very good and the subscription model and the subscription model is hooking in, Udall told PreMarket Prep.

He cautioned that “if you do not have a safe haven in tech that can hold, then the other techs are not going to hold.

He concluded that even if you are not going to trade or invest in the issue, “it would be a good one to keep on your screen if the markets keep going down and this holds, there you go.”

The full discussion with Udall can be found here, and he segment on Nutanix starts at the 17-minute, 20-second mark:

Posted In: TechnicalsTechTrading IdeasPreMarket Prep