NetApp (NTAP) Stock Declines While Market Improves: Some Information for Investors

NetApp (NTAP) closed at $100.90 in the latest trading session, marking a -2.37% move from the prior day. The stock's change was less than the S&P 500's daily gain of 0.44%. At the same time, the Dow added 0.36%, and the tech-heavy Nasdaq gained 0.54%.

Shares of the data storage company witnessed a gain of 2.27% over the previous month, beating the performance of the Computer and Technology sector with its loss of 2.47%, and the S&P 500's loss of 3.31%.

Market participants will be closely following the financial results of NetApp in its upcoming release. The company plans to announce its earnings on May 28, 2026. In that report, analysts expect NetApp to post earnings of $2.25 per share. This would mark year-over-year growth of 16.58%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.86 billion, indicating a 7.66% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $7.96 per share and a revenue of $6.84 billion, signifying shifts of +9.79% and +4.15%, respectively, from the last year.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for NetApp. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.03% upward. NetApp is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, NetApp is holding a Forward P/E ratio of 12.98. This represents no noticeable deviation compared to its industry average Forward P/E of 12.98.

One should further note that NTAP currently holds a PEG ratio of 2.61. 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 average PEG ratio for the Computer- Storage Devices industry stood at 1.31 at the close of the market yesterday.

The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 49, placing it within the top 21% of over 250 industries.

The Zacks Industry Rank gauges the strength of our 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.

To follow NTAP in the coming trading sessions, be sure to utilize Zacks.com.

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NetApp, Inc. (NTAP): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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