NetApp (NTAP) closed the most recent trading day at $209.74, moving +1.14% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.28%. On the other hand, the Dow registered a gain of 1.02%, and the technology-centric Nasdaq decreased by 0.02%.
Prior to today's trading, shares of the data storage company had gained 4.65% outpaced the Computer and Technology sector's loss of 2.28% and the S&P 500's gain of 0.67%.
Analysts and investors alike will be keeping a close eye on the performance of NetApp in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.6, reflecting a 26.83% increase from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.11 billion, up 23.83% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $10.05 per share and revenue of $8.23 billion, indicating changes of +23.62% and +18.91%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for NetApp. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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.
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. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, NetApp possesses a Zacks Rank of #1 (Strong Buy).
Valuation is also important, so investors should note that NetApp has a Forward P/E ratio of 20.64 right now. Its industry sports an average Forward P/E of 11.58, so one might conclude that NetApp is trading at a premium comparatively.
It's also important to note that NTAP currently trades at a PEG ratio of 1.85. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. By the end of yesterday's trading, the Computer- Storage Devices industry had an average PEG ratio of 1.47.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 24, positioning it in the top 10% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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).