NetApp (NTAP) closed at $99.25 in the latest trading session, marking a +2.22% move from the prior day. This change outpaced the S&P 500's 0.55% gain on the day. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 0.91%.
Coming into today, shares of the data storage company had lost 11.78% in the past month. In that same time, the Computer and Technology sector gained 0.04%, while the S&P 500 gained 0.71%.
The investment community will be paying close attention to the earnings performance 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. Our most recent consensus estimate is calling for quarterly revenue of $1.69 billion, up 3.28% from the year-ago period.
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. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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, there's been no change in the Zacks Consensus EPS estimate. Right now, NetApp possesses a Zacks Rank of #3 (Hold).
In the context of valuation, NetApp is at present trading with a Forward P/E ratio of 12.32. This indicates a discount in contrast to its industry's Forward P/E of 23.33.
It is also worth noting that NTAP currently has a PEG ratio of 1.73. 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. By the end of yesterday's trading, the Computer- Storage Devices industry had an average PEG ratio of 1.73.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 21, this industry ranks in the top 9% of all industries, numbering over 250.
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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