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NetApp (NTAP) Stock Slides as Market Rises: Facts to Know Before You Trade
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NetApp (NTAP - Free Report) closed at $105.07 in the latest trading session, marking a -1.31% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.64% for the day. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.69%.
The data storage company's shares have seen a decrease of 9.21% over the last month, not keeping up with the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.55%.
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 $2.07 per share, which would represent year-over-year growth of 8.38%. At the same time, our most recent consensus estimate is projecting a revenue of $1.69 billion, reflecting a 3.28% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.88 per share and revenue of $6.76 billion, which would represent changes of +8.69% and +2.82%, respectively, from the prior 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% upward. NetApp is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, NetApp is currently trading at a Forward P/E ratio of 13.51. This valuation marks a discount compared to its industry average Forward P/E of 16.26.
It's also important to note that NTAP currently trades at a PEG ratio of 1.89. 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. As the market closed yesterday, the Computer- Storage Devices industry was having an average PEG ratio of 1.9.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 17, placing it within the top 7% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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NetApp (NTAP) Stock Slides as Market Rises: Facts to Know Before You Trade
NetApp (NTAP - Free Report) closed at $105.07 in the latest trading session, marking a -1.31% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.64% for the day. At the same time, the Dow added 1.23%, and the tech-heavy Nasdaq gained 0.69%.
The data storage company's shares have seen a decrease of 9.21% over the last month, not keeping up with the Computer and Technology sector's loss of 0.21% and the S&P 500's gain of 0.55%.
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 $2.07 per share, which would represent year-over-year growth of 8.38%. At the same time, our most recent consensus estimate is projecting a revenue of $1.69 billion, reflecting a 3.28% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.88 per share and revenue of $6.76 billion, which would represent changes of +8.69% and +2.82%, respectively, from the prior 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. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.06% upward. NetApp is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, NetApp is currently trading at a Forward P/E ratio of 13.51. This valuation marks a discount compared to its industry average Forward P/E of 16.26.
It's also important to note that NTAP currently trades at a PEG ratio of 1.89. 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. As the market closed yesterday, the Computer- Storage Devices industry was having an average PEG ratio of 1.9.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 17, placing it within the top 7% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.