Is NetApp (USA Stocks:NTAP) outlook positive for December?

NetApp Inc. (NASDAQ: NTAP), a key player in the Computer Hardware industry, is showing promising technical indicators that suggest a bullish surge in the coming month. The stock's 200-day moving average stands at 71.62, while its 50-day moving average is at 75.64, both of which are below the current quote of 78.09, indicating an upward trend. Furthermore, Wall Street's target price for NTAP is 80.9, suggesting a potential upside of 1.88%. However, investors should note the company's change to net income, which shows a loss of 361M, and the maximum drawdown of 5.25%. Despite these factors, the technicals point towards a bullish surge for NetApp in December.

Main Points

NetApp Inc. holds an average rating of 'Hold' from 18 analysts. Is this consensus based on technical analyses? It's well-known that standard technical analysis employs price momentum, patterns, and trends by examining historical prices. The goal is to identify signals based on the market sentiment of NetApp investors and their perception of the company's future value. Let's delve into a few aspects of NetApp's technical analysis. The company has a Profit Margin (PM) of 0.19%, indicating that even a minor decrease in revenue could wipe out profits, resulting in a net loss. This is significantly below average. Similarly, it has an Operating Margin (OM) of 0.14%, suggesting that for every $100 of sales, it generates a net operating income of $0.14.
Published over six months ago
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Reviewed by Gabriel Shpitalnik

Every cloud has a silver lining, and for NetApp Inc. (NASDAQ: NTAP), the silver lining appears to be a bullish surge in the horizon. As we approach December, the technicals of this technology giant, specializing in Technology Hardware, Storage & Peripherals, are indicating a potential uptick in its stock performance. NetApp's PEG Ratio stands at 1.0619, suggesting that the stock is fairly valued given its earnings growth rate. The company's Beta of 1.185 indicates that it is slightly more volatile than the market, which could be a positive sign for investors looking for growth opportunities. The company's financial health is also noteworthy. NetApp reported a net income from continuing operations of $1.3 billion, despite a loss of $361 million to its net income. This indicates the company's ability to generate substantial profits, even in the face of significant losses. Moreover, the company's stock is trading near its 200-day moving average of $71.62, which is often seen as a support level in technical analysis. The Wall Street target price for NetApp is $80.9, suggesting a possible upside price of $79.7. This, coupled with the fact that the company's valuation market value and valuation real value are both hovering around the $78 mark, further strengthens the bullish outlook for the stock. In conclusion, with a strong financial footing and promising technical indicators, NetApp Inc. appears poised for a bullish surge as we head into December. However, as always, investors are advised to do their own research and consider their risk tolerance before making investment decisions. While some of us are intrigued by the technology hardware, storage, and peripherals sector, it is prudent to delve deeper into NetApp Inc. to gain a clearer understanding of its potential. As we have previously suggested, NetApp is beginning to experience a downturn as retail investors adopt a more bearish stance due to heightened sector volatility. Over the past few months, the market returns and NetApp's returns have shown a slight correlation. Stable fundamental indicators of the company may also hint at potential long-term gains for NetApp's retail investors. NetApp Inc. is set to announce its earnings today, with the subsequent financial report anticipated on February 28, 2024.
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.
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 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

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 Standard Deviation

NetApp Inc has current Standard Deviation of 1.12. The Standard Deviation is a measure of how spread out the prices or returns of an asset are on average. It is the most widely used risk indicator in the field of investing and finance. Standard Deviation is commonly used to measure confidence in statistical conclusions regarding certain equity instruments or portfolios of equities.
Standard deviation is applied to the annual rate of return of an investment to measure the investment's volatility. Standard deviation is also known as historical volatility and is used by investors as a gauge for the amount of expected market volatility. A large standard deviation usually indicates that the data points are far from the mean and a small standard deviation indicates that they are clustered closely around the mean.
Standard Deviation 
=  
SQRT(V) 
 = 
1.12
SQRT = Square root notation
V =   Variance of NetApp returns
Let's now compare NetApp Standard Deviation to its closest peers:
NTAP
KTCC
MMM
KO
WMT
NTAP1.122027105657302
KTCC2.35
MMM1.68
KO1.04
WMT1.26
Patience is the key to profit, and investors in NetApp Inc.
(NASDAQ: NTAP) may soon reap the rewards of their patience. The technology giant, with a market capitalization of $16.3 billion, is displaying strong technicals that suggest a bullish surge is imminent in December. The company's solid financials, including a net income applicable to common shares of $1.3 billion and an operating income of $1 billion, provide a strong foundation for growth. The promising Wall Street target price of $80.9, coupled with a 52-week high of $79.9955, indicates a potential upside. Furthermore, NetApp's robust current ratio of 1.38X and a low probability of bankruptcy at 12.20% underscore the company's financial stability. With these indicators, NetApp is poised for a bullish surge, offering an attractive opportunity for investors to capitalize on. .

NetApp is likely to close below $80 next week

NetApp Inc.'s recent downside variance has increased by over 1.21, suggesting a potential rise in risk and volatility. This indicates that the stock could experience significant price swings, potentially leading to investor losses. Given this elevated risk profile, it's possible that NetApp's stock could close below $80 in the upcoming week. Investors should closely monitor the situation and consider adjusting their positions to minimize potential losses. NetApp Inc. has relatively low volatility, with a skewness of 0.07 and a kurtosis of -0.24. However, we recommend that all investors independently research NetApp Inc. to ensure all available information aligns with their expectations of its upside potential and future returns. Understanding different market volatility trends can often assist investors in timing the market. Proper use of volatility indicators allows traders to gauge NetApp's stock risk against market volatility during both bullish and bearish trends. The increased level of volatility that accompanies bear markets can directly affect NetApp's stock price, adding stress for investors as they watch the value of their shares decline.
This typically prompts investors to rebalance their portfolios by purchasing different stocks as prices drop. In conclusion, NetApp Inc. (NTAP) presents a compelling investment opportunity. With a Valuation Market Value of 78.09 and a Valuation Real Value of 78.17, the stock is poised for a continued upward trajectory in December. The Analyst Overall Consensus is a 'Hold', with 10 analysts holding, 6 strongly buying, and only 1 selling. This is further supported by the Analyst Target Price Estimated Value of 79.647, suggesting a potential upside. However, investors should also consider the possible downside price of 77.44. With the fiscal year ending in April, investors have ample time to monitor the stock's performance. The highest and lowest estimated target prices by analysts are 100 and 63 respectively, indicating a wide range of possibilities. Therefore, investors should exercise due diligence while considering NTAP for their portfolio. .

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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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