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San Jose, California-based NetApp, Inc. (NTAP) is a leading provider of cloud-led, data-centric solutions that help enterprises manage and protect their data across on-premises, hybrid, and multi-cloud environments. Valued at a market cap of $24.8 billion, the company specializes in data storage systems, software, and cloud services designed to enhance the performance, security, and scalability of modern IT infrastructure.
Companies worth $10 billion or more are typically classified as “large-cap stocks,” and NetApp fits the label perfectly, with its market cap exceeding this threshold, underscoring its size, influence, and dominance within the software - infrastructure industry. With its strong expertise in hybrid cloud integration, data management, and AI-driven analytics, the company empowers businesses to accelerate digital transformation, improve efficiency, and harness the full potential of their data assets.
This software company is currently trading 8.3% below its 52-week high of $135.45, reached on Nov. 22, 2024. Shares of NTAP have soared 23.6% over the past three months, outperforming the Invesco AI and Next Gen Software ETF’s (IGPT) 16.1% return during the same time frame.
However, in the longer term, NTAP has gained 5.8% over the past 52 weeks, considerably underperforming IGPT's 22.7% uptick over the same time period. Moreover, on a YTD basis, shares of NTAP are up 7%, compared to IGPT’s 18.1% surge.
To confirm its bullish trend, NTAP has been trading above its 200-day moving average since mid-August, and has remained above its 50-day moving average since early May, with minor fluctuations.
On Aug. 27, NetApp delivered better-than-expected Q1 earnings results, which led to a 4.5% rise in its share price in the following trading session. The company reported revenue of $1.6 billion, up 1.2% from the year-ago quarter and 1.3% ahead of analyst estimates. Moreover, while its adjusted EPS of $1.55 declined marginally year-over-year, it topped the consensus estimates by a penny. Adding to the positives, its adjusted billings of $1.5 billion grew 4.3%, marking the seventh consecutive quarter of year-over-year growth.
NTAP has significantly underperformed its rival, Oracle Corporation (ORCL), which rallied 86.5% over the past 52 weeks and 81.3% on a YTD basis.
Given NTAP’s recent outperformance, analysts remain moderately optimistic about its prospects. The stock has a consensus rating of "Moderate Buy” from the 19 analysts covering it. While the company is trading above its mean price target of $119.07, its Street-high price target of $130 suggests a 4.7% premium to its current price levels.
