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NetApp (NTAP) Surpasses Market Returns: Some Facts Worth Knowing

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NetApp (NTAP - Free Report) ended the recent trading session at $107.76, demonstrating a +1.78% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 1.14%. Meanwhile, the Dow gained 1.1%, and the Nasdaq, a tech-heavy index, added 1.39%.

The data storage company's shares have seen an increase of 1.16% over the last month, not keeping up with the Computer and Technology sector's gain of 5.15% and the S&P 500's gain of 2%.

Market participants will be closely following the financial results of NetApp in its upcoming release. The company plans to announce its earnings on August 27, 2025. The company's earnings per share (EPS) are projected to be $1.54, reflecting a 1.28% decrease from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.54 billion, reflecting a 0.11% fall from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.73 per share and a revenue of $6.74 billion, representing changes of +6.62% and +2.63%, respectively, from the prior year.

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. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.1% increase. As of now, NetApp holds a Zacks Rank of #2 (Buy).

Looking at its valuation, NetApp is holding a Forward P/E ratio of 13.7. This expresses no noticeable deviation compared to the average Forward P/E of 13.7 of its industry.

It's also important to note that NTAP currently trades at a PEG ratio of 1.96. 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 was holding an average PEG ratio of 1.69 at yesterday's closing price.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 29, which puts it in the top 12% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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 follow all of these stock-moving metrics, and many more, on Zacks.com.


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