NetApp (NTAP) Increases Despite Market Slip: Here's What You Need to Know

NetApp (NTAP) closed the most recent trading day at $191.48, moving +2.62% from the previous trading session. The stock outpaced the S&P 500's daily loss of 0.18%. On the other hand, the Dow registered a loss of 0.85%, and the technology-centric Nasdaq decreased by 0.06%.

Prior to today's trading, shares of the data storage company had gained 12.82% outpaced the Computer and Technology sector's gain of 1.48% and the S&P 500's gain of 3.33%.

Investors will be eagerly watching for the performance of NetApp in its upcoming earnings disclosure. The company's upcoming EPS is projected at $2.11, signifying a 36.13% increase compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $1.83 billion, up 17.61% from the prior-year quarter.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $8.88 per share and a revenue of $7.49 billion, signifying shifts of +9.23% and +11.62%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NetApp. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. NetApp is currently sporting a Zacks Rank of #4 (Sell).

Digging into valuation, NetApp currently has a Forward P/E ratio of 21.02. This indicates a premium in contrast to its industry's Forward P/E of 15.47.

We can also see that NTAP currently has a PEG ratio of 2.75. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Computer- Storage Devices industry had an average PEG ratio of 1.3 as trading concluded yesterday.

The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 21, positioning it in the top 9% 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.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

Research Chief Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research