In the latest close session, NetApp (NTAP) was up +1.89% at $105.64. The stock outperformed the S&P 500, which registered a daily loss of 0.33%. Elsewhere, the Dow saw an upswing of 0.1%, while the tech-heavy Nasdaq depreciated by 0.59%.
Shares of the data storage company witnessed a loss of 3.13% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 1.09%, and the S&P 500's loss of 0%.
The investment community will be closely monitoring the performance of NetApp in its forthcoming earnings report. The company is scheduled to release its earnings on February 26, 2026. In that report, analysts expect NetApp to post earnings of $2.08 per share. This would mark year-over-year growth of 8.9%. Alongside, our most recent consensus estimate is anticipating revenue of $1.7 billion, indicating a 3.32% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $7.92 per share and revenue of $6.76 billion. These totals would mark changes of +9.24% and +2.89%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NetApp. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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 past month, there's been no change in the Zacks Consensus EPS estimate. NetApp is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, NetApp is currently being traded at a Forward P/E ratio of 13.1. For comparison, its industry has an average Forward P/E of 18.27, which means NetApp is trading at a discount to the group.
It's also important to note that NTAP currently trades at a PEG ratio of 1.83. 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 1.83 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 18, finds itself in the top 8% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
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NetApp, Inc. (NTAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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