At the last close, NetApp (NTAP) reached $122.93, representing a move of +0.36% from the previous day. The Dow, meanwhile, recorded a decline of 0.36%, while the tech-dominated Nasdaq recorded a gain of 0.21%.
Heading into today, shares of the data storage company had lost 5.9% over the past month. During the same period, the Computer and Technology sector lost 11.22%, while the S&P 500 lost 4.22%.
The investment community will be closely following NetApp’s earnings performance in the upcoming release. The company is scheduled to announce its earnings on August 28, 2024. The company is expected to report earnings per share of $1.46, up 26.96% from the year-ago quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.53 billion, up 7.13% from the year-ago period.
For the full fiscal year, the Zacks Consensus Estimates are projecting earnings of $6.86 per share and revenue of $6.55 billion, representing year-over-year changes of +6.19% and +4.43%, respectively.
It is also important for investors to be aware of any recent changes to analyst estimates for NetApp. Recent changes typically reflect the latest near-term business trends. Therefore, positive estimate changes convey analysts’ confidence in the company’s business development and earnings potential.
Empirical research shows that these estimate changes are directly related to upcoming stock price movements. To benefit from this, we have developed the Zacks Rank, a proprietary model that takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record, with #1 stocks delivering an average annual return of +25% since 1988. Over the past 30 days, the Zacks Consensus Estimate for Earnings per Share remained unchanged. NetApp currently has a Zacks Rank of #2 (Buy).
In terms of valuation, NetApp is currently trading at a P/E ratio of 17.87. For comparison, the industry average is 15.33, which means NetApp is trading at a premium to the group.
Meanwhile, NTAP’s PEG ratio currently stands at 3.95. Similar to the generally accepted P/E ratio, the PEG ratio also takes into account the company’s forecasted earnings growth. As of yesterday’s close, NTAP’s industry average PEG ratio was 1.53.
The Computer Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 69, putting it in the top 28% of all 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 those groups. Our research shows that the top 50% of industries outperform the bottom half by a factor of 2 to 1.
For more information on all of these metrics and more, visit Zacks.com.
Want the latest recommendations from Zacks Investment Research? Download the 7 best stocks for the next 30 days today. Click here to get this free report
NetApp, Inc. (NTAP): Free Stock Analysis Report
To read this article on Zacks.com, click here.
Zacks Investment Research
