The most recent trading session ended with NetApp (NTAP) standing at $76.14, reflecting a -1.21% shift from the previouse trading day's closing. This change was narrower than the S&P 500's daily loss of 1.57%. Elsewhere, the Dow saw a downswing of 0.84%, while the tech-heavy Nasdaq depreciated by 2.15%.
Coming into today, shares of the data storage company had lost 16.27% in the past month. In that same time, the Computer and Technology sector lost 16.01%, while the S&P 500 lost 12.16%.
Analysts and investors alike will be keeping a close eye on the performance of NetApp in its upcoming earnings disclosure. The company is forecasted to report an EPS of $1.89, showcasing a 5% upward movement from the corresponding quarter of the prior year. Meanwhile, our latest consensus estimate is calling for revenue of $1.73 billion, up 3.45% from the prior-year quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.23 per share and revenue of $6.57 billion. These totals would mark changes of +11.92% and +4.75%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for NetApp. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, 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 past month, the Zacks Consensus EPS estimate has moved 0.11% lower. NetApp currently has a Zacks Rank of #3 (Hold).
In terms of valuation, NetApp is currently trading at a Forward P/E ratio of 10.66. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 10.66.
It's also important to note that NTAP currently trades at a PEG ratio of 1.24. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Computer- Storage Devices industry currently had an average PEG ratio of 1.32 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 63, putting it in the top 26% of all 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.
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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