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NetApp (NTAP) Outpaces Stock Market Gains: What You Should Know

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The most recent trading session ended with NetApp (NTAP - Free Report) standing at $116.10, reflecting a +0.69% shift from the previouse trading day's closing. This change outpaced the S&P 500's 0.41% gain on the day. Meanwhile, the Dow experienced a rise of 0.69%, and the technology-dominated Nasdaq saw an increase of 0.8%.

The data storage company's shares have seen a decrease of 6.03% over the last month, not keeping up with the Computer and Technology sector's loss of 0.01% and the S&P 500's loss of 0.97%.

The investment community will be closely monitoring the performance of NetApp in its forthcoming earnings report. The company is scheduled to release its earnings on November 21, 2024. The company is predicted to post an EPS of $1.79, indicating a 13.29% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.64 billion, indicating a 5.29% upward movement from the same quarter last year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.08 per share and revenue of $6.58 billion. These totals would mark changes of +9.6% and +5.01%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for NetApp. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.

Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. 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, 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 past month, there's been no change in the Zacks Consensus EPS estimate. NetApp is holding a Zacks Rank of #2 (Buy) right now.

With respect to valuation, NetApp is currently being traded at a Forward P/E ratio of 16.29. This valuation marks a premium compared to its industry's average Forward P/E of 14.4.

It's also important to note that NTAP currently trades at a PEG ratio of 3.49. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer- Storage Devices industry had an average PEG ratio of 2.03 as trading concluded yesterday.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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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