NetApp (NTAP) Increases Yet Falls Behind Market: What Investors Need to Know

Core Insights - NetApp's stock price closed at $82.45, reflecting a +0.94% change, which lagged behind the S&P 500's gain of 2.51% [1] - Over the past month, NetApp shares have decreased by 14.13%, underperforming the Computer and Technology sector's loss of 12.18% and the S&P 500's loss of 8.86% [1] Earnings Performance - NetApp is expected to report an EPS of $1.89, representing a 5% increase from the same quarter last year [2] - Revenue is forecasted at $1.73 billion, indicating a 3.45% increase compared to the previous year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $7.23 per share, reflecting an 11.92% increase, and revenue is expected to be $6.57 billion, showing a 4.75% increase from the prior year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for NetApp are crucial as they reflect short-term business trends and can indicate analysts' positive outlook on the company's health and profitability [4] Stock Price Performance Link - Estimate alterations are linked to stock price performance, and the Zacks Rank system incorporates these changes to provide a rating system [5] Zacks Rank - The Zacks Rank ranges from 1 (Strong Buy) to 5 (Strong Sell), with a historical average annual return of +25% for stocks rated 1 since 1988 [6] - Currently, NetApp holds a Zacks Rank of 3 (Hold) [6] Valuation Metrics - NetApp has a Forward P/E ratio of 11.3, which is in line with its industry's Forward P/E of 11.3 [7] - The PEG ratio for NetApp is 1.32, compared to the industry average of 1.39 [7] Industry Ranking - The Computer-Storage Devices industry ranks in the top 14% of all industries, with a current Zacks Industry Rank of 33 [8] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]