NetApp (NTAP) Stock Sinks As Market Gains: Here's Why

NetApp (NTAP) closed at $194.48 in the latest trading session, marking a -5% move from the prior day. The stock's performance was behind the S&P 500's daily gain of 0.21%. Elsewhere, the Dow saw an upswing of 0.22%, while the tech-heavy Nasdaq appreciated by 0.16%.

Shares of the data storage company have appreciated by 23.5% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.8%, and the S&P 500's gain of 3.25%.

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 September 2, 2026. In that report, analysts expect NetApp to post earnings of $2.11 per share. This would mark year-over-year growth of 36.13%. At the same time, our most recent consensus estimate is projecting a revenue of $1.83 billion, reflecting a 17.61% rise from the equivalent quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $9 per share and revenue of $7.54 billion, indicating changes of +10.7% and +8.86%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for NetApp. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.83% higher. NetApp is currently a Zacks Rank #3 (Hold).

Investors should also note NetApp's current valuation metrics, including its Forward P/E ratio of 22.74. This denotes a premium relative to the industry average Forward P/E of 10.67.

Investors should also note that NTAP has a PEG ratio of 2.98 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 was holding an average PEG ratio of 1.18 at yesterday's closing price.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 23, which puts 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.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

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

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