NetApp (NTAP) Stock Falls Amid Market Uptick: What Investors Need to Know

NetApp (NTAP) ended the recent trading session at $190.68, demonstrating a -1.64% change from the preceding day's closing price. The stock's change was less than the S&P 500's daily gain of 0.72%. On the other hand, the Dow registered a gain of 0.2%, and the technology-centric Nasdaq increased by 1.57%.

Prior to today's trading, shares of the data storage company had gained 11.9% outpaced the Computer and Technology sector's gain of 5.02% and the S&P 500's gain of 3.68%.

Investors will be eagerly watching for the performance of NetApp in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on September 2, 2026. In that report, analysts expect NetApp to post earnings of $2.12 per share. This would mark year-over-year growth of 36.77%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.84 billion, indicating a 18.24% increase compared to the same quarter of the previous year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $9.05 per share and revenue of $7.56 billion. These totals would mark changes of +11.32% and +9.22%, respectively, from last year.

It's also important for investors to be aware of any recent modifications to analyst estimates for NetApp. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Based on our research, we believe these estimate revisions are directly related to near-term stock moves. 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, 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 shifted 2.51% upward. As of now, NetApp holds a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that NetApp has a Forward P/E ratio of 21.43 right now. This indicates a premium in contrast to its industry's Forward P/E of 10.07.

Also, we should mention that NTAP has a PEG ratio of 2.8. 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. By the end of yesterday's trading, the Computer- Storage Devices industry had an average PEG ratio of 1.05.

The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 21, placing it within the top 9% of over 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.

Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.

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

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