In the latest trading session, NetApp (NTAP) closed at $103.23, marking a +2.11% move from the previous day. This change outpaced the S&P 500's 1.47% gain on the day. Meanwhile, the Dow experienced a rise of 1.34%, and the technology-dominated Nasdaq saw an increase of 1.95%.
The data storage company's shares have seen a decrease of 5.74% over the last month, not keeping up with the Computer and Technology sector's gain of 3.41% and the S&P 500's gain of 0.64%.
Analysts and investors alike will be keeping a close eye on the performance of NetApp in its upcoming earnings disclosure. The company's earnings report is set to go public on August 27, 2025. On that day, NetApp is projected to report earnings of $1.54 per share, which would represent a year-over-year decline of 1.28%. In the meantime, our current consensus estimate forecasts the revenue to be $1.54 billion, indicating a 0.11% decline compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.73 per share and a revenue of $6.74 billion, representing changes of +6.62% and +2.63%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for NetApp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.1% higher. NetApp is currently a Zacks Rank #2 (Buy).
In the context of valuation, NetApp is at present trading with a Forward P/E ratio of 13.08. This signifies no noticeable deviation in comparison to the average Forward P/E of 13.08 for its industry.
It is also worth noting that NTAP currently has a PEG ratio of 1.87. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 2.06 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 46, positioning it in the top 19% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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NetApp, Inc. (NTAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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