NetApp Stock Declines Outpace Market Retreat Amid Mixed Sector Performance

NetApp (NTAP) shares fell to $106.82 in recent trading, experiencing a 2.39% decline that significantly underperformed the broader market backdrop. While the S&P 500 retreated 0.92% and the Nasdaq dropped 0.84%, NetApp’s steeper decline highlights relative weakness in the data storage sector. The Dow also posted a 1.18% loss during the same period.

Deteriorating Monthly Performance

The underperformance becomes more pronounced when examining the month-long picture. NetApp fell 8.09% over the past month, substantially lagging the Computer and Technology sector’s 1.64% gain and the S&P 500’s 1.48% advancement. This divergence suggests sector-specific headwinds impacting the stock independent of broader economic conditions.

Earnings Expectations on the Horizon

Investors are preparing for NetApp’s upcoming earnings announcement scheduled for November 25, 2025. The company is expected to post EPS of $1.89, representing a 1.07% year-over-year increase. Revenue guidance forecasts $1.69 billion, reflecting 1.68% growth compared to the prior-year quarter. For the full fiscal year, consensus estimates project earnings per share of $7.77 and revenue of $6.76 billion, translating to 7.17% and 2.85% growth respectively versus the previous year.

Valuation and Industry Standing

From a valuation perspective, NetApp appears reasonably priced. The stock trades at a Forward P/E ratio of 14.09, substantially below the industry average of 18.9, suggesting a discount relative to peers. The PEG ratio stands at 1.92, matching the Computer-Storage Devices industry average, which factors in growth expectations alongside earnings multiples.

The Computer-Storage Devices industry maintains a Zacks Industry Rank of 39, placing it in the top 16% of all industries tracked. This strong positioning indicates that the sector group continues to demonstrate relative strength despite individual stock weakness.

Analyst Rating and Estimate Revisions

NetApp currently carries a Zacks Rank of #3 (Hold), reflecting a neutral outlook from the research community. Notably, consensus EPS estimates have remained unchanged over the past month, suggesting stability in earnings expectations despite the recent stock price deterioration. The divergence between static estimates and falling share prices may indicate temporary market sentiment rather than fundamental deterioration in business prospects.

Analyst estimate revisions historically correlate with subsequent stock performance, as research shows that upward estimate momentum often precedes positive price action. The absence of recent revisions suggests the market may be pricing in factors beyond near-term earnings fundamentals.