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The latest trading session saw NetApp (NTAP) ending at $81.34, denoting a -1.02% adjustment from its last day's close. This move was narrower than the S&P 500's daily loss of 2.24%. Elsewhere, the Dow saw a downswing of 1.73%, while the tech-heavy Nasdaq depreciated by 3.07%.
Shares of the data storage company have depreciated by 10.93% over the course of the past month, underperforming the Computer and Technology sector's loss of 6.31% and the S&P 500's loss of 4.17%.
Investors will be eagerly watching for the performance of NetApp in its upcoming earnings disclosure. In that report, analysts expect NetApp to post earnings of $1.89 per share. This would mark year-over-year growth of 5%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.73 billion, indicating a 3.45% increase compared to the same quarter of the previous year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.23 per share and a revenue of $6.57 billion, signifying shifts of +11.92% and +4.75%, respectively, from the last year.
Any recent changes to analyst estimates for NetApp should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.11% decrease. At present, NetApp boasts a Zacks Rank of #3 (Hold).
Looking at valuation, NetApp is presently trading at a Forward P/E ratio of 11.37. This indicates no noticeable deviation in contrast to its industry's Forward P/E of 11.37.
It's also important to note that NTAP currently trades at a PEG ratio of 1.33. 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. As of the close of trade yesterday, the Computer- Storage Devices industry held an average PEG ratio of 1.45.