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NetApp (NTAP) Registers a Bigger Fall Than the Market: Important Facts to Note
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In the latest close session, NetApp (NTAP - Free Report) was down 7.03% at $222.20. The stock fell short of the S&P 500, which registered a loss of 1.11% for the day. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 1.88%.
Shares of the data storage company have appreciated by 25.84% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.49%, and the S&P 500's gain of 2.06%.
The upcoming earnings release of NetApp will be of great interest to investors. The company is forecasted to report an EPS of $2.6, showcasing a 26.83% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.11 billion, up 23.83% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $10.05 per share and a revenue of $8.23 billion, demonstrating changes of +23.62% and +18.91%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for NetApp. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. NetApp is currently sporting a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, NetApp is currently exchanging hands at a Forward P/E ratio of 23.78. This expresses a premium compared to the average Forward P/E of 11.26 of its industry.
It's also important to note that NTAP currently trades at a PEG ratio of 2.13. 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 1.5 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% of all 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.
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) Registers a Bigger Fall Than the Market: Important Facts to Note
In the latest close session, NetApp (NTAP - Free Report) was down 7.03% at $222.20. The stock fell short of the S&P 500, which registered a loss of 1.11% for the day. Meanwhile, the Dow experienced a drop of 0.09%, and the technology-dominated Nasdaq saw a decrease of 1.88%.
Shares of the data storage company have appreciated by 25.84% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.49%, and the S&P 500's gain of 2.06%.
The upcoming earnings release of NetApp will be of great interest to investors. The company is forecasted to report an EPS of $2.6, showcasing a 26.83% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.11 billion, up 23.83% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $10.05 per share and a revenue of $8.23 billion, demonstrating changes of +23.62% and +18.91%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for NetApp. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. NetApp is currently sporting a Zacks Rank of #1 (Strong Buy).
From a valuation perspective, NetApp is currently exchanging hands at a Forward P/E ratio of 23.78. This expresses a premium compared to the average Forward P/E of 11.26 of its industry.
It's also important to note that NTAP currently trades at a PEG ratio of 2.13. 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 1.5 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% of all 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.
To follow NTAP in the coming trading sessions, be sure to utilize Zacks.com.