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Is NetApp (NTAP) Stock Outpacing Its Computer and Technology Peers This Year?

Zacks Equity Research
Some investors are rotating out of earlier high flying technology stocks into cheap emerging markets.

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 659 companies in the Computer and Technology group. The Computer and Technology group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.

The Zacks Rank is a proven system that emphasizes earnings estimates and estimate revisions, highlighting a variety of stocks that are displaying the right characteristics to beat the market over the next one to three months. NTAP is currently sporting a Zacks Rank of #1 (Strong Buy).

Over the past three months, the Zacks Consensus Estimate for NTAP's full-year earnings has moved 4.28% higher. This is a sign of improving analyst sentiment and a positive earnings outlook trend.

According to our latest data, NTAP has moved about 42.61% on a year-to-date basis. Meanwhile, the Computer and Technology sector has returned an average of -0.30% on a year-to-date basis. This means that NetApp is performing better than its sector in terms of year-to-date returns.

Looking more specifically, NTAP belongs to the Computer- Storage Devices industry, which includes 9 individual stocks and currently sits at #115 in the Zacks Industry Rank. This group has lost an average of 4.56% so far this year, so NTAP is performing better in this area.

Going forward, investors interested in Computer and Technology stocks should continue to pay close attention to NTAP as it looks to continue its solid performance.


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