NetApp (NTAP) Stock Drops Despite Market Gains: Important Facts to Note

Group 1: Stock Performance - NetApp (NTAP) closed at $118.52, reflecting a -1.13% change from the previous day, underperforming the S&P 500's daily gain of 0.26% [1] - Over the past month, NetApp shares appreciated by 6.29%, underperforming the Computer and Technology sector's gain of 7.4% but outperforming the S&P 500's gain of 2.87% [1] Group 2: Upcoming Earnings - NetApp is projected to report earnings of $1.89 per share, indicating year-over-year growth of 1.07% [2] - The Zacks Consensus Estimate for revenue is $1.69 billion, up 1.68% from the previous year [2] Group 3: Full-Year Estimates - Full-year Zacks Consensus Estimates for NetApp are earnings of $7.77 per share and revenue of $6.76 billion, representing year-over-year changes of +7.17% and +2.85%, respectively [3] - Recent changes to analyst estimates for NetApp may reflect evolving short-term business trends, with positive revisions indicating optimism about the business outlook [3] Group 4: Valuation Metrics - NetApp has a Forward P/E ratio of 15.43, which is lower than the industry average Forward P/E of 16.36, suggesting it is trading at a discount [6] - The current PEG ratio for NetApp is 2.1, which is in line with the average PEG ratio of 2.1 for Computer-Storage Devices stocks [7] Group 5: Industry Ranking - The Computer-Storage Devices industry is part of the Computer and Technology sector, holding a Zacks Industry Rank of 207, placing it in the bottom 17% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]