Trade-Ideas: NetApp (NTAP) Is Today's Post-Market Leader Stock

Trade-Ideas LLC identified NetApp (NTAP) as a post-market leader candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

NetApp

(

NTAP

) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified NetApp as such a stock due to the following factors:

  • NTAP has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $106.9 million.
  • NTAP is up 8.5% today from today's close.

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More details on NTAP:

NetApp, Inc. provides software, systems, and services to manage and store computer data worldwide. The stock currently has a dividend yield of 2.3%. NTAP has a PE ratio of 23. Currently there are 5 analysts that rate NetApp a buy, 6 analysts rate it a sell, and 16 rate it a hold.

The average volume for NetApp has been 3.4 million shares per day over the past 30 days. NetApp has a market cap of $9.3 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 0.70 and a short float of 6.3% with 4.64 days to cover. Shares are down 24.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates NetApp as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:

  • The current debt-to-equity ratio, 0.50, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, NTAP has a quick ratio of 2.16, which demonstrates the ability of the company to cover short-term liquidity needs.
  • The gross profit margin for NETAPP INC is rather high; currently it is at 67.12%. Regardless of NTAP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NTAP's net profit margin of -2.24% significantly underperformed when compared to the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Computers & Peripherals industry. The net income has significantly decreased by 133.9% when compared to the same quarter one year ago, falling from $88.40 million to -$30.00 million.
  • The share price of NETAPP INC has not done very well: it is down 24.75% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.

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