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NetApp (NTAP) Exceeds Market Returns: Some Facts to Consider

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NetApp (NTAP - Free Report) closed the latest trading day at $112.28, indicating a +1.64% change from the previous session's end. The stock outpaced the S&P 500's daily gain of 0.09%. At the same time, the Dow lost 0.49%, and the tech-heavy Nasdaq gained 0.65%.

The data storage company's stock has climbed by 12.78% in the past month, exceeding the Computer and Technology sector's gain of 7.36% and the S&P 500's gain of 5.78%.

The upcoming earnings release of NetApp will be of great interest to investors. The company's earnings report is expected on May 30, 2024. In that report, analysts expect NetApp to post earnings of $1.80 per share. This would mark year-over-year growth of 16.88%. At the same time, our most recent consensus estimate is projecting a revenue of $1.66 billion, reflecting a 5.05% rise from the equivalent quarter last year.

Investors should also take note of any recent adjustments to analyst estimates for NetApp. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. NetApp currently has a Zacks Rank of #2 (Buy).

In terms of valuation, NetApp is presently being traded at a Forward P/E ratio of 16.61. This signifies a discount in comparison to the average Forward P/E of 26.94 for its industry.

We can additionally observe that NTAP currently boasts a PEG ratio of 1.89. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer- Storage Devices industry had an average PEG ratio of 1.55 as trading concluded yesterday.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 23, finds itself in the top 10% echelons of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on

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