NetApp (NTAP) closed at $122.44 in the latest trading session, marking a +1.8% move from the prior day. The stock outperformed the S&P 500, which registered a daily gain of 0.53%. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.25%.
Coming into today, shares of the data storage company had gained 3.62% in the past month. In that same time, the Computer and Technology sector lost 0.75%, while the S&P 500 gained 1.24%.
The investment community will be paying close attention to the earnings performance of NetApp in its upcoming release. The company's earnings per share (EPS) are projected to be $1.90, reflecting a 2.06% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $1.69 billion, up 5.16% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.31 per share and a revenue of $6.65 billion, signifying shifts of +13.16% and +6.06%, respectively, from the last year.
Investors should also take note of any recent adjustments 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.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.12% higher. NetApp is holding a Zacks Rank of #2 (Buy) right now.
In terms of valuation, NetApp is currently trading at a Forward P/E ratio of 16.44. Its industry sports an average Forward P/E of 13.75, so one might conclude that NetApp is trading at a premium comparatively.
One should further note that NTAP currently holds a PEG ratio of 2.3. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 2.15 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 161, placing it within the bottom 36% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow NTAP in the coming trading sessions, be sure to utilize Zacks.com.
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