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NetApp (NTAP) Outpaces Stock Market Gains: What You Should Know

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In the latest close session, NetApp (NTAP - Free Report) was up +1.88% at $106.91. The stock exceeded the S&P 500, which registered a gain of 0.02% for the day. Elsewhere, the Dow saw a downswing of 0.14%, while the tech-heavy Nasdaq appreciated by 0.33%.

Shares of the data storage company witnessed a loss of 0.74% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 6.31%, and the S&P 500's gain of 4.93%.

The investment community will be paying close attention to the earnings performance of NetApp in its upcoming release. On that day, NetApp is projected to report earnings of $1.54 per share, which would represent a year-over-year decline of 1.28%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.54 billion, indicating a 0.11% decrease compared to the same quarter of the previous year.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.73 per share and a revenue of $6.74 billion, indicating changes of +6.62% and +2.63%, respectively, from the former year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NetApp. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.1% higher. Currently, NetApp is carrying a Zacks Rank of #3 (Hold).

Looking at its valuation, NetApp is holding a Forward P/E ratio of 13.58. Its industry sports an average Forward P/E of 13.58, so one might conclude that NetApp is trading at no noticeable deviation comparatively.

One should further note that NTAP currently holds a PEG ratio of 1.94. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer- Storage Devices industry stood at 2.06 at the close of the market yesterday.

The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 66, placing it within the top 27% of over 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.


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