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NetApp (NTAP) Stock Moves -1.53%: What You Should Know

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The latest trading session saw NetApp (NTAP - Free Report) ending at $116.28, denoting a -1.53% adjustment from its last day's close. The stock's performance was ahead of the S&P 500's daily loss of 1.54%. Meanwhile, the Dow lost 1.63%, and the Nasdaq, a tech-heavy index, lost 1.63%.

Prior to today's trading, shares of the data storage company had lost 4.39% over the past month. This has lagged the Computer and Technology sector's gain of 0.11% and the S&P 500's loss of 2.2% in that time.

Analysts and investors alike will be keeping a close eye on the performance of NetApp in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.90, indicating a 2.06% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.69 billion, up 5.15% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.31 per share and revenue of $6.65 billion. These totals would mark changes of +13.16% and +6.05%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for NetApp. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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. The Zacks Consensus EPS estimate has moved 0.04% lower within the past month. Right now, NetApp possesses a Zacks Rank of #3 (Hold).

With respect to valuation, NetApp is currently being traded at a Forward P/E ratio of 16.15. This denotes a premium relative to the industry's average Forward P/E of 13.22.

It is also worth noting that NTAP currently has a PEG ratio of 2.26. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer- Storage Devices was holding an average PEG ratio of 2.04 at yesterday's closing price.

The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 238, placing it within the bottom 6% of over 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.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.


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