|Bid||86.09 x 800|
|Ask||86.49 x 1200|
|Day's Range||86.08 - 87.92|
|52 Week Range||75.96 - 106.96|
|PE Ratio (TTM)||67.30|
|Forward Dividend & Yield||2.00 (2.31%)|
|1y Target Est||N/A|
In the previous part of this series, we saw that NetApp’s (NTAP) revenue rose 10% YoY (year-over-year) in fiscal Q4 2018 and 7% YoY in fiscal 2018, beating its guidance. The company’s solid demand, key customer wins, and expansion across regions boosted its revenue.
NetApp (NTAP) announced its fiscal Q4 2018 (ended in April) results on May 23, reporting revenue of $1.6 billion. Its revenue rose 10% YoY (year-over-year) from $1.5 billion. The company’s non-GAAP net income rose 20.5% YoY to $288 million, and its EPS rose 22% to $1.05.
Let's see if Western Digital Corporation (WDC) stock is a good choice for value-oriented investors right now, or if investors subscribing to this methodology should look elsewhere for top picks.
Things are looking up for a whole basket of IT companies, according to a report today by Moody’s Investors Services analyst Stephen Sohn and his colleagues. Companies from Microsoft (MSFT) to Adobe Systems (ADBE) to Oracle (ORCL) to NetApp (NTAP) to Salesforce.com (CRM) are set to benefit from rising operating profit that’s vastly outpacing global GDP growth, write the authors. Moody’s upgraded its outlook on “diversified IT” as a group to “Positive” from what had been “stable” before, citing potential for Ebitda (earnings before interest, taxes, depreciation, and amortization) to rise by “about 7.5%” this year, versus the global GDP growth projection of 3.4% in 2018 and 3.2% in 2019.
The price-to-earnings (P/E) ratio is by far the most widely used metric in value investing given its apparent simplicity. What Makes EV/EBITDA a Better Choice? While P/E enjoys great popularity, a less-used and more-complicated metric called EV/EBITDA gains an upper hand as it offers a clearer picture of a company’s valuation and earnings potential.
NetApp (NTAP) stock has returned 73% in the last 12 months, 0.5% in the last month, and -2.7% in the last five days. NetApp stock rose 36% in 2016 and 60% in 2017. Since the start of 2018, it’s risen almost 26%.
The Zacks Analyst Blog Highlights: Western Digital, Magna International, Nucor, Sony and Caterpillar
NetApp (NTAP) has a dividend yield of 1.1% and pays a quarterly dividend of $0.20 per share, leading to an annualized payout of $0.80 per share. NetApp’s dividend payout ratio is 27.4%, and the company has increased its dividend for the last four consecutive years.
HP Inc. (HPQ) stock has returned 17.0% in the last 12 months, 3.7% in the last month, and 3.6% in the last five days. HP stock rose 30.0% in 2016 and 46.0% in 2017. Since the start of 2018, HP stock has risen ~7.5%. Peers IBM (IBM), Western Digital (WDC), and Seagate Technology (STX) have returned -4.0%, -10.0%, and 33.0%, respectively, in the last 12 months.
The S&P 500’s top gainers on May 16 were: Macy’s (M) gained 10.8%. Under Armour (UAA) gained 8.7%. Under Armour Inc Class C (UA) gained 6.9%. Western Digital (WDC) gained 4.9%. Assurant (AIZ) gained 4.7%. Macy’s
Driven by several robust quarters of revenue growth, HP Inc. (HPQ) ended fiscal 2017 with free cash flow of $3.3 billion. The firm returned 69.0% of free cash flow ($2.3 billion) to shareholders via share repurchases and dividends in fiscal 2017.
Western Digital (WDC) is seeing solid earnings estimate revision activity and is a great company from a Zacks Industry Rank perspective.
The deluge of 13-F’s yesterday revealed huge (and some new) stakes of Micron (MU) by very smart tech investors. Coatue management revealed a 14.5 million share stake. Appaloosa and Duquesne upped their positions in the memory maker as well. To be fair Millenium, Point72 Hong Kong, and Bluecrest reduced their positions, but we mainly heard about the buys. Also remember that in January and February, Micron’s stock spent a lot of time in the low-to-mid $40’s. Then today, RBC analyst Amit Daryanani launched on the name with a bullish $80 price target, an outperform, and a thesis that investors are too negative on the memory cycle. I have know Amit for years and he is an excellent analyst – full stop. There is no but to that. He is smart, thoughtful, and taught me a lot about stocks I was…unwise about. He points out that the memory market is down from 15 players to 3, an excellent point for the long-term prospects of Micron. I remember visiting some of the 12 companies that have gone the way of the dodo in the early 2000’s – it was depressing. At any rate, Amit knows of what he speaks.
Previously in this series, we learned that analysts expect HP Inc.’s (HPQ) revenues to rise ~9.5% YoY (year-over-year) in the fiscal second quarter. The company’s earnings per share are expected to rise ~20.0% in the quarter.
Shares of hard drive and NAND flash chip maker Western Digital (WDC) are up $1.84, or 2.3%, at $82.96, after the company this morning said it priced $2.5 billion of term loans, and said it will buy back $1 billion of its stock, half of that this quarter. Micron is up 76 cents, or 1.4%, at $53.76.
Owing to its broad exposure to favorable growth trends in data creation, accumulation, and storage, data storage giant Western Digital Corp (NASDAQ:WDC) has been one of Wall Street’s favorites over the past two years. During that stretch, WDC stock has run from $40 to $80 as revenue growth has surged, margins have improved, and earnings have soared. This price normalization will lead to gross margin erosion, something that management hinted at in last quarter’s conference call.