NetApp (NTAP) closed the latest trading day at $93.09, indicating a +0.82% change from the previous session's end. This change outpaced the S&P 500's 0.64% loss on the day. On the other hand, the Dow registered a loss of 0.24%, and the technology-centric Nasdaq decreased by 0.74%.
The the stock of data storage company has risen by 21.33% in the past month, leading the Computer and Technology sector's gain of 3.67% and the S&P 500's gain of 0.38%.
The investment community will be closely monitoring the performance of NetApp in its forthcoming earnings report. The company is forecasted to report an EPS of $1.89, showcasing a 5% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.73 billion, up 3.42% from the year-ago period.
It is also important to note the recent changes to analyst estimates for NetApp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.5% decrease. NetApp presently features a Zacks Rank of #3 (Hold).
In the context of valuation, NetApp is at present trading with a Forward P/E ratio of 11.93. For comparison, its industry has an average Forward P/E of 11.93, which means NetApp is trading at no noticeable deviation to the group.
Investors should also note that NTAP has a PEG ratio of 1.39 right now. 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 1.66 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 162, this industry ranks in the bottom 35% of all industries, numbering over 250.
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.
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NetApp, Inc. (NTAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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