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NetApp (NTAP) Falls More Steeply Than Broader Market: What Investors Need to Know
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NetApp (NTAP - Free Report) closed at $231.22 in the latest trading session, marking a -1.93% move from the prior day. This change lagged the S&P 500's daily loss of 0.47%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 1.25%.
Heading into today, shares of the data storage company had gained 27.62% over the past month, outpacing the Computer and Technology sector's gain of 6.08% and the S&P 500's gain of 1.15%.
The investment community will be paying close attention to the earnings performance of NetApp in its upcoming release. It is anticipated that the company will report an EPS of $2.6, marking a 26.83% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.11 billion, indicating a 23.83% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.05 per share and a revenue of $8.23 billion, representing changes of +23.62% and +18.91%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for NetApp. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 remained unchanged. NetApp currently has a Zacks Rank of #1 (Strong Buy).
With respect to valuation, NetApp is currently being traded at a Forward P/E ratio of 23.46. This denotes a premium relative to the industry average Forward P/E of 10.77.
It's also important to note that NTAP currently trades at a PEG ratio of 2.1. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer- Storage Devices industry currently had an average PEG ratio of 1.43 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 4, placing it within the top 2% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NTAP in the coming trading sessions, be sure to utilize Zacks.com.
View the Zacks #1 Rank List
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NetApp (NTAP) Falls More Steeply Than Broader Market: What Investors Need to Know
NetApp (NTAP - Free Report) closed at $231.22 in the latest trading session, marking a -1.93% move from the prior day. This change lagged the S&P 500's daily loss of 0.47%. On the other hand, the Dow registered a gain of 0.1%, and the technology-centric Nasdaq decreased by 1.25%.
Heading into today, shares of the data storage company had gained 27.62% over the past month, outpacing the Computer and Technology sector's gain of 6.08% and the S&P 500's gain of 1.15%.
The investment community will be paying close attention to the earnings performance of NetApp in its upcoming release. It is anticipated that the company will report an EPS of $2.6, marking a 26.83% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $2.11 billion, indicating a 23.83% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $10.05 per share and a revenue of $8.23 billion, representing changes of +23.62% and +18.91%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for NetApp. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 remained unchanged. NetApp currently has a Zacks Rank of #1 (Strong Buy).
With respect to valuation, NetApp is currently being traded at a Forward P/E ratio of 23.46. This denotes a premium relative to the industry average Forward P/E of 10.77.
It's also important to note that NTAP currently trades at a PEG ratio of 2.1. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer- Storage Devices industry currently had an average PEG ratio of 1.43 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 4, placing it within the top 2% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NTAP in the coming trading sessions, be sure to utilize Zacks.com.