NetApp Inc (NASDAQ:NTAP).'s shares concluded their two-day winning streak, falling by 1.5% to $75.77 on Wednesday. The technology company's stock decline came amid a broader market downturn, with the S&P 500 Index and Dow Jones Industrial Average also falling by 1.34% and 0.98% respectively.
According to InvestingPro, NetApp's adjusted Market Capitlization stands at an impressive $15.82 billion. The company's P/E Ratio is 13.53, which is relatively low compared to its near-term earnings growth, indicating that the stock may be undervalued.
The performance of NetApp was mixed when compared to its competitors in the same trading session. While Cloudflare (NYSE:NET) Inc. Cl A and Arista Networks (NYSE:ANET) Inc.'s stocks fell by 3.40% and 0.62%, Western Digital Corp (NASDAQ:WDC).'s shares rose by 0.70%.
NetApp's trading volume of 1.7 million remained slightly under the average of the past fifty days, which stood at 1.8 million. This is despite closing $4.76 below its year's high of $80.53 set on July 21, 2023.
InvestingPro Tips also highlight that NetApp has been consistently increasing its earnings per share and has maintained dividend payments for 11 consecutive years. These factors, combined with the company's aggressive share buyback strategy, suggest a strong commitment to rewarding shareholders.
In terms of future prospects, analysts predict that NetApp will continue to be profitable, with the next earnings date slated for November 28, 2023. The company's fair value, as assessed by InvestingPro, is $90.12, suggesting a potential room for growth. The return on assets in the most recent quarter was also a healthy 12.85%, indicating efficient use of resources.
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