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NetApp (NTAP) Rises Higher Than Market: Key Facts

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NetApp (NTAP - Free Report) ended the recent trading session at $115.65, demonstrating a +1.41% swing from the preceding day's closing price. This move outpaced the S&P 500's daily gain of 0.7%. Elsewhere, the Dow gained 0.01%, while the tech-heavy Nasdaq added 1.1%.

Coming into today, shares of the data storage company had gained 12.98% in the past month. In that same time, the Computer and Technology sector gained 8.26%, while the S&P 500 gained 4.03%.

Market participants will be closely following the financial results of NetApp in its upcoming release. The company plans to announce its earnings on May 30, 2024. The company is forecasted to report an EPS of $1.80, showcasing a 16.88% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $1.66 billion, showing a 5.05% escalation compared to the year-ago quarter.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NetApp. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. NetApp currently has a Zacks Rank of #3 (Hold).

With respect to valuation, NetApp is currently being traded at a Forward P/E ratio of 17.15. This represents a discount compared to its industry's average Forward P/E of 26.6.

We can also see that NTAP currently has a PEG ratio of 3.11. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer- Storage Devices was holding an average PEG ratio of 1.57 at yesterday's closing price.

The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 29, positioning it in the top 12% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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