NetApp (NTAP) closed at $118.96 in the latest trading session, marking a -1.35% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 1.08%. Meanwhile, the Dow experienced a rise of 1.31%, and the technology-dominated Nasdaq saw an increase of 1.55%.
Heading into today, shares of the data storage company had gained 7.86% over the past month, lagging the Computer and Technology sector's gain of 8.37% and outpacing the S&P 500's gain of 3.34%.
Market participants will be closely following the financial results of NetApp in its upcoming release. The company plans to announce its earnings on May 28, 2026. The company is predicted to post an EPS of $2.27, indicating a 17.62% growth compared to the equivalent quarter last year. 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.
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.
Investors should also note any recent changes to analyst estimates for NetApp. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.72% higher. NetApp presently features a Zacks Rank of #4 (Sell).
In the context of valuation, NetApp is at present trading with a Forward P/E ratio of 13.97. This expresses a discount compared to the average Forward P/E of 17.66 of its industry.
Investors should also note that NTAP has a PEG ratio of 2.8 right now. 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 Computer- Storage Devices industry currently had an average PEG ratio of 1.62 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 27, finds itself in the top 12% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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NetApp, Inc. (NTAP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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