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NetApp (NTAP) Gains As Market Dips: What You Should Know

NetApp (NTAP) closed at $71.91 in the latest trading session, marking a +0.13% move from the prior day. This move outpaced the S&P 500's daily loss of 0.66%. Elsewhere, the Dow lost 0.99%, while the tech-heavy Nasdaq lost 1.63%.

Coming into today, shares of the data storage company had lost 16.15% in the past month. In that same time, the Computer and Technology sector lost 10.48%, while the S&P 500 lost 8.1%.

Wall Street will be looking for positivity from NTAP as it approaches its next earnings report date. This is expected to be November 21, 2018. On that day, NTAP is projected to report earnings of $0.99 per share, which would represent year-over-year growth of 22.22%. Meanwhile, our latest consensus estimate is calling for revenue of $1.51 billion, up 6.27% from the prior-year quarter.

For the full year, our Zacks Consensus Estimates are projecting earnings of $4.43 per share and revenue of $6.29 billion, which would represent changes of +27.67% and +6.47%, respectively, from the prior year.

Any recent changes to analyst estimates for NTAP should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.15% higher within the past month. NTAP is currently sporting a Zacks Rank of #1 (Strong Buy).

In terms of valuation, NTAP is currently trading at a Forward P/E ratio of 16.22. This valuation marks a no noticeable deviation compared to its industry's average Forward P/E of 16.22.

It is also worth noting that NTAP currently has a PEG ratio of 1.15. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer- Storage Devices was holding an average PEG ratio of 1.15 at yesterday's closing price.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 49, which puts it in the top 19% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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