Comparison of NetApp's Stock Performance in the AI and Next-Generation Software Sector
NetApp, Inc. (NTAP), a leading provider of cloud-led, data-centric solutions, delivered better-than-expected Q1 earnings results on Aug. 27. The company specializes in data storage systems, software, and cloud services.
Despite the positive earnings report, NetApp's share price has been underperforming compared to its competitors. As of the date of publication, the company's shares are currently trading 8.3% below its 52-week high of $135.45. However, NetApp's shares have gained 5.8% over the past 52 weeks and have soared 23.6% over the past three months, following the Q1 earnings release.
NetApp's adjusted EPS for Q1 was $1.55, down marginally year-over-year but still topped analyst estimates by a penny. The company's Q1 revenue was $1.6 billion, up 1.2% year-over-year and 1.3% ahead of analyst estimates. NetApp's adjusted billings for Q1 grew by 4.3%, marking the seventh consecutive quarter of year-over-year growth.
NetApp, Inc. is classified as a 'large-cap stock' and has a market cap of $24.8 billion. The company's shares are up 7% on a YTD basis, while the Invesco AI and Next Gen Software ETF (IGPT) is up 18.1% on the same basis. Interestingly, IGPT has a 22.7% uptick over the same 52-week period, outperforming NetApp's 5.8% growth.
NetApp's stock is trading above its mean price target of $119.07, but its Street-high price target of $130 suggests a 4.7% premium to its current price levels. The analyst with the highest price target for NetApp, Inc. is Karl Keirstead.
NetApp, Inc. has a consensus rating of 'Moderate Buy' from the 19 analysts covering it. However, it's worth noting that NetApp's rival, Oracle Corporation, has significantly outperformed NetApp over the past year, rallying 86.5% over the past 52 weeks and 81.3% on a YTD basis.
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