This firm's average rating is Hold from 16 analysts. Do analysts base this consensus on technical analyses? We know that typical technical analysis utilizes price momentum, patterns, and trends looking at historical prices. It aims to identify signals based on NetApp market sentiment investors' perception of the future value of NetApp. Let us look at a few aspects of NetApp technical analysis.
Using predictive
technical analysis, we can analyze different prices and returns patterns and
diagnose historical swings to determine the real value of NetApp Inc. In general, sophisticated investors focus on analyzing NetApp stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build NetApp's daily price indicators and compare them against related drivers such as
momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional
technical analysis and
fundamental analysis, we attempt to find the most accurate representation of
NetApp's intrinsic value. In addition to deriving basic predictive indicators for NetApp, many experienced traders also check how macroeconomic factors affect NetApp price patterns. Please read more on our
technical analysis page or use our predictive modules below to complement your research.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of NetApp's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as NetApp. Your research has to be compared to or analyzed against NetApp's peers to derive any actionable benefits. When done correctly, NetApp's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in NetApp Inc.
How important is NetApp's Liquidity
NetApp
financial leverage refers to using borrowed capital as a funding source to finance NetApp Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. NetApp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to NetApp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of NetApp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between NetApp's total debt and its cash.
NetApp Gross Profit
NetApp Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing NetApp previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show NetApp Gross Profit growth over the last 10 years. Please check NetApp's
gross profit and other
fundamental indicators for more details.
Closer look at NetApp Mean Deviation
NetApp Inc has current Mean Deviation of 2.0. The mean deviation of the equity instrument is the first measure of the distances between each value of security historical prices and the mean. It gives us an idea of how spread out from the center the distribution of returns.
Mean Deviation is the average of the absolute values of the differences between price distribution numbers and their mean. Mean deviation of equity instrument with a lot of historical data is a biased estimator because the time horizon used in calculation will always be much smaller than the entire price history of the equity. The mean deviation is typically used as a measure of dispersion for small investment horizon, otherwise standard deviation is a better measure of dispersion.
Mean Deviation | = | SUM(RET DEV) N |
| = | 2.0 |
| SUM | = | Summation notation |
| RET DEV | = | Sum of return deviations of NetApp |
| N | = | Number of calculation points for selected time horizon |
Let's now compare NetApp Mean Deviation to its closest peers:
| NTAP | 2.000967687327824 |
| EXEO | 5.46 |
| CAJ | 1.72 |
| CAN | 4.77 |
| DDD | 3.6 |
Will NetApp pull back in January 2021?
Recent total risk alpha is at 0.21. As of the 1st of December, NetApp secures the Risk Adjusted Performance of 0.198,
downside deviation of 2.3, and Mean Deviation of 2.0. In connection with
fundamental indicators, the
technical analysis model lets you check existing technical drivers of NetApp Inc, as well as the relationship between them. Strictly speaking, you can use this information to find out if the firm will indeed mirror its model of past prices, or the prices will eventually revert. We were able to interpolate data for nineteen
technical drivers for NetApp, which can be compared to its peers in the industry. Please verify
NetApp Inc information ratio,
potential upside, as well as the
relationship between the Potential Upside and
kurtosis to decide if NetApp Inc is priced some-what accurately, providing market reflects its recent price of 53.31 per share. Given that NetApp Inc has
jensen alpha of 0.2608, we recommend you to check NetApp's last-minute market performance to make sure the company can sustain itself at a future point.
Our Conclusion on NetApp
Although other companies under the computer hardware industry are still a bit expensive, NetApp may offer a potential longer-term growth to insiders. To conclude, as of the 1st of December 2020, our analysis shows that NetApp responds to the market. The firm is
fairly valued and projects
below average odds of distress for the next 2 years. Our final 30 days buy-or-sell advice on the firm is
Strong Buy.
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Rifka Kats is a Member of Macroaxis Editorial Board. Rifka writes about retail product and service companies from the perspective of a regular consumer and sophisticated investor at the same time. She is passionate about corporate ethics and equality in the workforce.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Rifka Kats do not own shares of NetApp Inc. Please refer to our
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