NetApp Inc.'s Buy Recommendation Affirmed

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

NEW YORK ( TheStreet) -- NetApp (Nasdaq: NTAP) has been reiterated by TheStreet Ratings as a buy with a ratings score of B-. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, compelling growth in net income, notable return on equity and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • Since the same quarter one year prior, revenues slightly increased by 0.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has slightly increased to $362.50 million or 7.75% when compared to the same quarter last year.
  • The net income increased by 52.2% when compared to the same quarter one year prior, rising from $109.60 million to $166.80 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization.
  • Compared to where it was trading one year ago, NTAP is up 32.64% to its most recent closing price of 40.39. Looking ahead, although the push and pull of a bull or bear market could certainly alter the outcome, our view is that this stock's positive fundamentals give it good potential for further appreciation.

NetApp, Inc. engages in design, manufacture, and marketing of networked storage solutions. The company supplies enterprise storage and data management software and hardware products and services. NetApp has a market cap of $13.7 billion and is part of the technology sector and computer hardware industry. The company has a P/E ratio of 25.00, above the S&P 500 P/E ratio of 18.00. Shares are up 20.4% year to date as of the close of trading on Thursday.

You can view the full NetApp Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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