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NetApp (NTAP) Beats Stock Market Upswing: What Investors Need to Know

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NetApp (NTAP - Free Report) closed at $107.25 in the latest trading session, marking a +2.97% move from the prior day. This change outpaced the S&P 500's 0.54% gain on the day. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.74%.

Prior to today's trading, shares of the data storage company had gained 1.37% lagged the Computer and Technology sector's gain of 5.77% and the S&P 500's gain of 4.2%.

Investors will be eagerly watching for the performance of NetApp in its upcoming earnings disclosure. The company's upcoming EPS is projected at $1.54, signifying a 1.28% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $1.54 billion, indicating a 0.15% decline compared to the corresponding quarter of the prior year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.72 per share and a revenue of $6.74 billion, representing changes of +6.48% and +2.58%, respectively, from the prior year.

Any recent changes to analyst estimates for NetApp should also be noted by investors. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.48% downward. Currently, NetApp is carrying a Zacks Rank of #3 (Hold).

With respect to valuation, NetApp is currently being traded at a Forward P/E ratio of 13.48. For comparison, its industry has an average Forward P/E of 13.48, which means NetApp is trading at no noticeable deviation to the group.

It is also worth noting that NTAP currently has a PEG ratio of 1.93. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 1.98 based on yesterday's closing prices.

The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 15, positioning it in the top 7% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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