NetApp (NTAP) closed the most recent trading day at $107.03, moving +1.56% from the previous trading session. The stock's performance was ahead of the S&P 500's daily gain of 0.16%. Meanwhile, the Dow gained 0.17%, and the Nasdaq, a tech-heavy index, added 0.26%.
Prior to today's trading, shares of the data storage company had lost 8.88% lagged the Computer and Technology sector's loss of 0.85% and the S&P 500's gain of 1.89%.
Market participants will be closely following the financial results of NetApp in its upcoming release. The company is predicted to post an EPS of $2.07, indicating a 8.38% growth compared to the equivalent quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $1.69 billion, up 3.28% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.88 per share and a revenue of $6.76 billion, representing changes of +8.69% and +2.82%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for NetApp. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.06% increase. Right now, NetApp possesses a Zacks Rank of #3 (Hold).
Investors should also note NetApp's current valuation metrics, including its Forward P/E ratio of 13.38. This represents a discount compared to its industry average Forward P/E of 20.25.
One should further note that NTAP currently holds a PEG ratio of 1.87. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer- Storage Devices industry currently had an average PEG ratio of 1.87 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 23, finds itself in the top 10% echelons 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.
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NetApp, Inc. (NTAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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