NetApp (NTAP) closed the latest trading day at $101.53, indicating a +0.99% change from the previous session's end. The stock's change was more than the S&P 500's daily gain of 0.09%. Meanwhile, the Dow gained 0.32%, and the Nasdaq, a tech-heavy index, added 0.02%.
The data storage company's stock has climbed by 21.69% in the past month, exceeding the Computer and Technology sector's gain of 18.89% and the S&P 500's gain of 13.05%.
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 May 29, 2025. On that day, NetApp is projected to report earnings of $1.89 per share, which would represent year-over-year growth of 5%. Alongside, our most recent consensus estimate is anticipating revenue of $1.73 billion, indicating a 3.42% upward movement from the same quarter last year.
Investors should also note any 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 capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical 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. The Zacks Consensus EPS estimate has moved 0.5% lower within the past month. Right now, NetApp possesses a Zacks Rank of #4 (Sell).
In terms of valuation, NetApp is currently trading at a Forward P/E ratio of 12.98. This denotes no noticeable deviation relative to the industry's average Forward P/E of 12.98.
Also, we should mention that NTAP has a PEG ratio of 1.51. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Computer- Storage Devices industry was having an average PEG ratio of 1.96.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 221, positioning it in the bottom 11% 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.
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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