Is NetApp Stock Underperforming the S&P 500?

Company Overview - NetApp, Inc. (NTAP) has a market capitalization of $23.3 billion and is a global provider of enterprise software, systems, and services for data infrastructure management across various environments [1] - The company operates through Hybrid Cloud and Public Cloud segments, offering advanced data management software, high-performance storage solutions, and cloud-integrated services [1][2] Stock Performance - Shares of NetApp have decreased by 9.2% from their 52-week high of $131 and have declined 5.2% over the past three months, underperforming the S&P 500 Index, which gained 5.4% in the same period [3] - Year-to-date, NTAP stock is up marginally, lagging behind the S&P 500's 16.4% increase, and has decreased 8.5% over the past 52 weeks compared to the S&P 500's 12.4% return [4] Financial Results - In fiscal Q2 2026, NetApp reported net revenues of $1.71 billion, a 3% year-over-year increase, and record adjusted EPS of $2.05, exceeding analysts' expectations [5] - The company experienced a 9% year-over-year growth in all-flash array revenue to $1 billion and a 32% growth in first-party and marketplace cloud storage services, alongside record operating margins [5] Competitive Landscape - Rival Western Digital Corporation (WDC) has significantly outperformed NTAP, with shares soaring approximately 217% over the past 52 weeks and 276% year-to-date [6] - Despite NTAP's recent performance challenges, analysts maintain a moderately optimistic outlook, with a consensus rating of "Moderate Buy" and a mean price target of $124.47, indicating a potential premium of 6.4% from current levels [6]