In the latest trading session, NetApp (NTAP) closed at $116.23, marking a -1.27% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.16%. Meanwhile, the Dow experienced a rise of 0.11%, and the technology-dominated Nasdaq saw a decrease of 0.71%.
Prior to today's trading, shares of the data storage company had gained 19.64% outpaced the Computer and Technology sector's gain of 17.98% and the S&P 500's gain of 8.81%.
Investors will be eagerly watching for the performance of NetApp in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on May 28, 2026. In that report, analysts expect NetApp to post earnings of $2.26 per share. This would mark year-over-year growth of 17.1%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.86 billion, indicating a 7.62% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.97 per share and a revenue of $6.83 billion, indicating changes of +9.93% and +3.99%, respectively, from the former year.
Investors should also note any recent changes to analyst estimates for NetApp. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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, the Zacks Consensus EPS estimate has shifted 0.16% downward. Currently, NetApp is carrying a Zacks Rank of #4 (Sell).
Investors should also note NetApp's current valuation metrics, including its Forward P/E ratio of 13.64. This valuation marks a discount compared to its industry average Forward P/E of 14.64.
We can also see that NTAP currently has a PEG ratio of 2.74. 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 1.6 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 30, positioning it in the top 13% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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NetApp, Inc. (NTAP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).