In the latest close session, NetApp (NTAP) was up +2.16% at $106.79. The stock's performance was ahead of the S&P 500's daily loss of 0.24%. Elsewhere, the Dow saw a downswing of 0.01%, while the tech-heavy Nasdaq depreciated by 0.26%.
Shares of the data storage company have appreciated by 3.38% over the course of the past month, underperforming the Computer and Technology sector's gain of 9.41%, and the S&P 500's gain of 6.42%.
The investment community will be closely monitoring the performance of NetApp in its forthcoming earnings report. The company is scheduled to release its earnings on May 28, 2026. On that day, NetApp is projected to report earnings of $2.26 per share, which would represent year-over-year growth of 17.1%. Alongside, our most recent consensus estimate is anticipating revenue of $1.86 billion, indicating a 7.62% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $7.97 per share and a revenue of $6.83 billion, representing changes of +9.93% and +3.99%, respectively, from the prior year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NetApp. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. NetApp is currently sporting a Zacks Rank of #3 (Hold).
From a valuation perspective, NetApp is currently exchanging hands at a Forward P/E ratio of 13.12. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 13.12.
It's also important to note that NTAP currently trades at a PEG ratio of 2.63. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Computer- Storage Devices was holding an average PEG ratio of 1.46 at yesterday's closing price.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 33, placing it within the top 14% of over 250 industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the 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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NetApp, Inc. (NTAP): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).