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NetApp (NTAP) Advances While Market Declines: Some Information for Investors

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In the latest market close, NetApp (NTAP - Free Report) reached $124.58, with a +0.04% movement compared to the previous day. This change outpaced the S&P 500's 0.43% loss on the day. On the other hand, the Dow registered a loss of 1.01%, and the technology-centric Nasdaq decreased by 0.47%.

The data storage company's stock has dropped by 1.21% in the past month, falling short of the Computer and Technology sector's gain of 0.32% and the S&P 500's gain of 2.6%.

Investors will be eagerly watching for the performance of NetApp in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on February 27, 2025. On that day, NetApp is projected to report earnings of $1.90 per share, which would represent a year-over-year decline of 2.06%. In the meantime, our current consensus estimate forecasts the revenue to be $1.69 billion, indicating a 5.16% growth compared to the corresponding quarter of the prior year.

NTAP's full-year Zacks Consensus Estimates are calling for earnings of $7.31 per share and revenue of $6.65 billion. These results would represent year-over-year changes of +13.16% and +6.06%, respectively.

It is also important to note the recent changes to analyst estimates for NetApp. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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. As of now, NetApp holds a Zacks Rank of #3 (Hold).

With respect to valuation, NetApp is currently being traded at a Forward P/E ratio of 17.02. Its industry sports an average Forward P/E of 17.02, so one might conclude that NetApp is trading at no noticeable deviation comparatively.

Also, we should mention that NTAP has a PEG ratio of 2.38. 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 2.38 as of yesterday's close.

The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 151, positioning it in the bottom 40% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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