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NetApp (NTAP) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest trading session, NetApp (NTAP - Free Report) closed at $118.52, marking a -1.13% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.48%.
Shares of the data storage company have appreciated by 6.29% over the course of the past month, underperforming the Computer and Technology sector's gain of 7.4%, and outperforming the S&P 500's gain of 2.87%.
Investors will be eagerly watching for the performance of NetApp in its upcoming earnings disclosure. On that day, NetApp is projected to report earnings of $1.89 per share, which would represent year-over-year growth of 1.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.69 billion, up 1.68% from the year-ago period.
NTAP's full-year Zacks Consensus Estimates are calling for earnings of $7.77 per share and revenue of $6.76 billion. These results would represent year-over-year changes of +7.17% and +2.85%, respectively.
Investors should also note any recent changes to analyst estimates for NetApp. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 1.15% higher. NetApp is currently a Zacks Rank #3 (Hold).
From a valuation perspective, NetApp is currently exchanging hands at a Forward P/E ratio of 15.43. Its industry sports an average Forward P/E of 16.36, so one might conclude that NetApp is trading at a discount comparatively.
Investors should also note that NTAP has a PEG ratio of 2.1 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 2.1 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 17% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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NetApp (NTAP) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, NetApp (NTAP - Free Report) closed at $118.52, marking a -1.13% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.26%. Meanwhile, the Dow experienced a rise of 0.15%, and the technology-dominated Nasdaq saw an increase of 0.48%.
Shares of the data storage company have appreciated by 6.29% over the course of the past month, underperforming the Computer and Technology sector's gain of 7.4%, and outperforming the S&P 500's gain of 2.87%.
Investors will be eagerly watching for the performance of NetApp in its upcoming earnings disclosure. On that day, NetApp is projected to report earnings of $1.89 per share, which would represent year-over-year growth of 1.07%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.69 billion, up 1.68% from the year-ago period.
NTAP's full-year Zacks Consensus Estimates are calling for earnings of $7.77 per share and revenue of $6.76 billion. These results would represent year-over-year changes of +7.17% and +2.85%, respectively.
Investors should also note any recent changes to analyst estimates for NetApp. These recent revisions tend to reflect the evolving nature of short-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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 1.15% higher. NetApp is currently a Zacks Rank #3 (Hold).
From a valuation perspective, NetApp is currently exchanging hands at a Forward P/E ratio of 15.43. Its industry sports an average Forward P/E of 16.36, so one might conclude that NetApp is trading at a discount comparatively.
Investors should also note that NTAP has a PEG ratio of 2.1 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 2.1 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 207, putting it in the bottom 17% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.