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In the latest trading session, NetApp (NTAP - Free Report) closed at $215.05, marking a +2.37% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.2%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.04%.
Shares of the data storage company have appreciated by 16.21% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.78%, and the S&P 500's loss of 0.35%.
The investment community will be paying close attention to the earnings performance of NetApp in its upcoming release. In that report, analysts expect NetApp to post earnings of $2.6 per share. This would mark year-over-year growth of 26.83%. In the meantime, our current consensus estimate forecasts the revenue to be $2.11 billion, indicating a 23.83% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.05 per share and revenue of $8.23 billion. These totals would mark changes of +23.62% and +18.91%, respectively, from last 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 13.28% higher. As of now, NetApp holds a Zacks Rank of #1 (Strong Buy).
Looking at valuation, NetApp is presently trading at a Forward P/E ratio of 20.91. This valuation marks a premium compared to its industry average Forward P/E of 10.65.
Also, we should mention that NTAP has a PEG ratio of 1.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NTAP's industry had an average PEG ratio of 1.41 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
View the Zacks #1 Rank List
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Why NetApp (NTAP) Outpaced the Stock Market Today
In the latest trading session, NetApp (NTAP - Free Report) closed at $215.05, marking a +2.37% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.2%. On the other hand, the Dow registered a gain of 0.04%, and the technology-centric Nasdaq increased by 0.04%.
Shares of the data storage company have appreciated by 16.21% over the course of the past month, outperforming the Computer and Technology sector's gain of 4.78%, and the S&P 500's loss of 0.35%.
The investment community will be paying close attention to the earnings performance of NetApp in its upcoming release. In that report, analysts expect NetApp to post earnings of $2.6 per share. This would mark year-over-year growth of 26.83%. In the meantime, our current consensus estimate forecasts the revenue to be $2.11 billion, indicating a 23.83% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $10.05 per share and revenue of $8.23 billion. These totals would mark changes of +23.62% and +18.91%, respectively, from last 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. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 13.28% higher. As of now, NetApp holds a Zacks Rank of #1 (Strong Buy).
Looking at valuation, NetApp is presently trading at a Forward P/E ratio of 20.91. This valuation marks a premium compared to its industry average Forward P/E of 10.65.
Also, we should mention that NTAP has a PEG ratio of 1.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. NTAP's industry had an average PEG ratio of 1.41 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.