NetApp (NTAP) ended the recent trading session at $98.40, demonstrating a +2.57% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 1.02%. Meanwhile, the Dow experienced a rise of 0.63%, and the technology-dominated Nasdaq saw an increase of 1.23%.
The data storage company's stock has dropped by 2.77% in the past month, falling short of the Computer and Technology sector's gain of 1.17% and the S&P 500's gain of 0.63%.
Analysts and investors alike will be keeping a close eye on the performance of NetApp in its upcoming earnings disclosure. The company's earnings report is set to go public on May 28, 2026. The company's earnings per share (EPS) are projected to be $2.25, reflecting a 16.58% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $1.86 billion, indicating a 7.66% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $7.96 per share and revenue of $6.83 billion, which would represent changes of +9.79% and +4%, respectively, from the prior 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. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. NetApp is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, NetApp is presently being traded at a Forward P/E ratio of 12.05. This signifies no noticeable deviation in comparison to the average Forward P/E of 12.05 for its industry.
Also, we should mention that NTAP has a PEG ratio of 2.42. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computer- Storage Devices industry stood at 1.33 at the close of the market yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 52, putting it in the top 22% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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NetApp, Inc. (NTAP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).