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Is NetApp (NTAP) Outperforming Other Computer and Technology Stocks This Year?

Zacks Equity Research
Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

For those looking to find strong Computer and Technology stocks, it is prudent to search for companies in the group that are outperforming their peers. NetApp (NTAP) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? One simple way to answer this question is to take a look at the year-to-date performance of NTAP and the rest of the Computer and Technology group's stocks.

NetApp is one of 655 individual stocks in the Computer and Technology sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.

The Zacks Rank is a proven model that highlights a variety of stocks with the right characteristics to outperform the market over the next one to three months. The system emphasizes earnings estimate revisions and favors companies with improving earnings outlooks. NTAP is currently sporting a Zacks Rank of #2 (Buy).

Over the past 90 days, the Zacks Consensus Estimate for NTAP's full-year earnings has moved 2.77% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Based on the latest available data, NTAP has gained about 4.59% so far this year. At the same time, Computer and Technology stocks have lost an average of 6.65%. This means that NetApp is performing better than its sector in terms of year-to-date returns.

Breaking things down more, NTAP is a member of the Computer- Storage Devices industry, which includes 9 individual companies and currently sits at #205 in the Zacks Industry Rank. On average, stocks in this group have lost 22.95% this year, meaning that NTAP is performing better in terms of year-to-date returns.

Investors in the Computer and Technology sector will want to keep a close eye on NTAP as it attempts to continue its solid performance.


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