NetApp NTAP shares rallied 13.1% in the last trading session to close at $86.10. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 16.3% loss over the past four weeks.
The increase in share price can attributed to President Trump’s announcement of a 90-day pause on reciprocal tariffs, barring China. This led to skyrocketing indices and subsequent increases for most stocks including NTAP. Last day, NetApp also announced new capabilities for Google Cloud NetApp Volumes. These new capabilities significantly reduce complexity, boost performance and unlock new potential for cloud storage workloads, notably those driven by artificial intelligence (AI), electronic design automation (EDA) and large content repositories.
Strength in flash business, Public Cloud segment and emerging opportunities in cloud/AI bode well for NetApp. In the fiscal third quarter of 2025, the company won more than 100 AI and data lake modernization deals. The company is also working on the development of GenAI cloud and on-premises solutions in collaboration with industry behemoths. Earlier, NetApp expanded its partnership with Google Cloud to provide the foundational data storage for the Google Distributed Cloud and make AI-ready infrastructure available to the public sector and other highly regulated industries.
This data storage company is expected to post quarterly earnings of $1.89 per share in its upcoming report, which represents a year-over-year change of +5%. Revenues are expected to be $1.73 billion, up 3.5% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For NetApp, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on NTAP going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
NetApp is part of the Zacks Computer- Storage Devices industry. Netlist, Inc. NLST, another stock in the same industry, closed the last trading session 8.5% higher at $0.98. NLST has returned -7.9% in the past month.
Netlist's consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.02. Compared to the company's year-ago EPS, this represents a change of +71.4%. Netlist currently boasts a Zacks Rank of #4 (Sell).
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NetApp, Inc. (NTAP): Free Stock Analysis Report Netlist, Inc. (NLST): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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