In the latest close session, NetApp (NTAP) was down 1.01% at $98.33. This change lagged the S&P 500's 0.13% loss on the day. Meanwhile, the Dow gained 0.11%, and the Nasdaq, a tech-heavy index, lost 0.72%.
The data storage company's stock has dropped by 7.25% in the past month, falling short of the Computer and Technology sector's gain of 1.88% and the S&P 500's gain of 0.78%.
Investors will be eagerly watching for the performance of NetApp in its upcoming earnings disclosure. The company is expected to report EPS of $2.07, up 8.38% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.7 billion, showing a 3.32% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.88 per share and a revenue of $6.76 billion, indicating changes of +8.69% and +2.89%, respectively, from the former year.
Any recent changes to analyst estimates for NetApp should also be noted by investors. Such recent modifications usually signify the changing landscape of near-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. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, NetApp boasts a Zacks Rank of #3 (Hold).
Looking at valuation, NetApp is presently trading at a Forward P/E ratio of 12.61. This represents a discount compared to its industry average Forward P/E of 23.29.
It's also important to note that NTAP currently trades at a PEG ratio of 1.77. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer- Storage Devices industry currently had an average PEG ratio of 1.77 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 24, which puts it in the top 10% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NetApp, Inc. (NTAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
