NetApp Stock Story

NTAP
 Stock
  

USD 74.05  1.44  1.91%   

While some traders are getting carried away by overanalyzing technology space, it is reasonable to recap NetApp Inc against current market trends. As expected, NetApp is starting to reaffirm its true potential as insiders are becoming more and more confident in the future outlook. Enough of the dispositions of the company stock price movements has been a presentation of what is happening in the market overall. The symptom of healthy basic indicators of the firm suggests a short-term price swing for insiders of NetApp. NetApp Inc is scheduled to announce its earnings tomorrow. The next financial report is expected on the 1st of June 2022.
Published over two months ago
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Our recent technical analysis of NetApp Inc (NASDAQ:NTAP)

The company's average rating is Buy 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. Earning per share calculations of NetApp is based on official Zacks consensus of 7 analysts regarding NetApp's future annual earnings. Given the historical accuracy of 80.87%, the future earnings per share of the company is estimated to be 4.21 with the lowest and highest values of 4.14 and 4.35, respectively. Please note that this consensus of annual earnings estimates for the firm is an estimate of EPS before non-recurring items and including employee stock options expenses.
Using predictive technical analysis, we will analyze different prices and returns patterns and diagnose historical swings to determine the real value of NetApp Inc. In general, we focus on analyzing NetApp stock price patterns and their correlations with different microeconomic environment and drivers. We also 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, we 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, frequently view 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 use the tools below to analyze the current value of NetApp in the context of predictive analytics.
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 towards taking a position in NetApp Inc.

How does NetApp Stands against Peers?

Analyzing NetApp competition or peers my help you to expand the diversification possibilities of your existing portfolios and to get a better perspective on locking in new positions. Try to analyze the advantages of investing in traded instruments related to NetApp across multiple sectors and thematic ideas. A good competitive analysis can cover a lot of different areas. But what areas to choose depends on who you are. The more exhaustive you are in your analysis, the more effective your competitive analysis will be.
Check out NetApp Competition Details

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for NetApp, but it might be worth checking our own buy vs. sell analysis

Breaking down NetApp Indicators

NetApp Inc has a beta of 1.2529. Let's try to break down what NetApp's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, NetApp will likely underperform. The beta indicator helps investors understand whether NetApp moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if NetApp deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
NetApp Inc price decline over the last few months may encourage insiders to take a closer look at the firm as it is trading at a share price of 73.05 on 1,872,509 in trading volume. The company executives were not very successful in positioning the firm resources to exploit market volatility in May. However, diversifying your holdings with NetApp or similar stocks can still protect your portfolio during high-volatility market scenarios. The stock standard deviation of daily returns for 90 days investing horizon is currently 2.25. The current volatility is consistent with the ongoing market swings in May 2022 as well as with NetApp Inc unsystematic, company-specific events.

Our perspective of the recent NetApp roll up

Standard deviation is down to 2.3. It may hint at a possible volatility decline.
As of the 31st of May, NetApp secures the risk adjusted performance of (0.048511), and Mean Deviation of 1.91. 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 analyze 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 73.05 per share. Given that NetApp Inc has jensen alpha of (0.1), we recommend you to check NetApp's last-minute market performance to make sure the company can sustain itself at a future point.

The Bottom Line

Although some other companies in the computer hardware industry are either recovering or due for a correction, NetApp may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor trade any shares of NetApp at this time. The NetApp Inc risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to NetApp.

Editorial Staff

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 Raphi Shpitalnik do not own shares of NetApp Inc. Please refer to our Terms of Use for any information regarding our disclosure principles.

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