Here's Why NetApp (NTAP) Fell More Than Broader Market

Core Viewpoint - NetApp is experiencing a decline in stock performance, with a notable loss over the past month, while upcoming earnings are anticipated to show slight growth in EPS and revenue [1][2]. Financial Performance - NetApp plans to announce its earnings on November 25, 2025, with an expected EPS of $1.89, reflecting a 1.07% increase from the prior-year quarter [2]. - The revenue forecast for the upcoming quarter is $1.69 billion, indicating a 1.68% growth compared to the same quarter last year [2]. - For the entire fiscal year, earnings are projected at $7.77 per share and revenue at $6.76 billion, representing increases of 7.17% and 2.85% respectively from the previous year [3]. Analyst Estimates - Recent modifications to analyst estimates for NetApp are crucial as they reflect short-term business trends, with positive revisions indicating a favorable outlook on business health and profitability [4]. - The Zacks Consensus EPS estimate has remained unchanged over the past month, and NetApp currently holds a Zacks Rank of 3 (Hold) [6]. Valuation Metrics - NetApp is trading at a Forward P/E ratio of 14.09, which is below the industry average of 18.9, suggesting it is undervalued compared to its peers [7]. - The company has a PEG ratio of 1.92, aligning with the industry average, which indicates a balance between its earnings growth expectations and current valuation [8]. Industry Context - The Computer-Storage Devices industry, part of the broader Computer and Technology sector, ranks in the top 16% of all industries according to the Zacks Industry Rank [9].