NetApp's Stock Price Rises 16% Due to Increasing Revenues

Since late 2018, NetApp Inc.'s (NASDAQ: NTAP) stock price has risen 16% from $60 to almost $70, due mainly to the company's steadily increasing revenues. Furthermore, over this same period, the company has also seen a significant increase in its re[...]

UKRAINE - 2021/03/31: In this photo illustration, a NetApp logo of the US cloud data services and ... [+] data management company seen displayed on a smartphone and a pc screen. (Photo Illustration by Pavlo Gonchar/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty Images
The future of data management looks bright, with companies like NetApp leading the way in cloud data services. This company is at the forefront of data innovation, and their products are sure to revolutionize the way we manage and store data. With their cutting-edge solutions, we can expect to see significant improvements in efficiency and productivity in the years to come.

Looking at NetApp Inc.'s (NASDAQ: NTAP) stock price, it's evident that the company has been steadily growing over the past few years. From 2018 to 2020, the stock price gained 16%, primarily due to a rise in the company's revenues. Additionally, over this period, NetApp witnessed a strong rise in its revenue per share, driven by a drop in its outstanding share count. Despite this, the stock underperformed the S&P 500, which grew more than 55% during this period. However, given the company's solid financials and strong future prospects, I believe that NetApp is a stock worth considering for long-term investment.

Our interactive dashboard, Why NetApp Stock Moved: NTAP Stock Has Gained 16%

Looking at NetApp's recent financials, it's clear that the company is on the upswing.

  • Looking at NetApp's recent financial history, it's clear that the company has had some ups and downs. However, it seems to be on the rebound, with total revenue increasing from $5.4 billion in FY '20 to $6.3 billion by FY '22. Currently, total revenue stands even higher at $6.5 billion. It will be interesting to see how NetApp's fortunes continue to change in the coming years.
  • Looking into the future, NetApp is expected to continue to grow its sales, with products and services both contributing approximately half of the total. This balanced approach should help the company weather any potential storms and continue to prosper in the years to come.
  • The services segment has been the driving force behind sales growth in recent years, and demand for these services remains strong even now. This segment is key to continued growth for the company, and we expect to see strong results from it in the future.
  • Looking at NetApp's revenue growth in comparison to its peers, it's clear that the company is doing quite well. Its revenues have been growing steadily, and it has managed to outpace its competitors in terms of overall growth.
NTAP - Impact on Stock PriceTrefis
It is evident that the stock price of NTAP is highly influenced by the company's performance.

Looking at the current trend, it is evident that the company's revenue per share is on the rise. This is a positive sign for the company, as it indicates that it is able to generate more revenue from its shareholders.

  • Looking at the financial numbers, it's clear that NetApp is doing well. The company's revenue has increased, while its outstanding share count has decreased. This is a good sign for the company's future.
  • RPS has steadily risen from $22.60 in FY ’18 to $29.25 currently, due to this. This upward trend is expected to continue, as RPS continues to invest in its growth and development.

The price-to-sales (P/S) multiple for NetApp rose from 2.6x in 2018 to 3.6x by 2021 end, and currently stands at 2.4x, still lower than its 2018 level. This suggests that the company's stock is undervalued compared to its historical levels.

  • NetApp's stock price is expected to continue to rise in the coming year as demand for its products and services increases. Its P/S multiple is expected to reach 3.6x by late 2021, as investors remain confident in the company's growth prospects.
  • The current increased economic uncertainty has caused the P/S multiple to pull back, currently standing at around 2.4x. This is weighinig on the broader markets, but I believe that the market will eventually rebound.

NetApp's stock return of 20% outperforms NTNX by 7.3% and underperforms IBM by 18%. This is according to data from Trefis.

If you're looking for a more balanced portfolio, our high-quality portfolio and multi-strategy portfolio have both outperformed the market since 2016. With returns of 175% and 262% respectively, these portfolios offer a great way to diversify your investments and potentially maximize your profits.

NTAP Return compared with Trefis Multi-Strategy PortfolioTrefis
The NTAP return compared with the Trefis Multi-Strategy Portfolio is a great way to diversify your investment strategy.

The Trefis Price Estimates Dashboard is a great way to see all of the company's price estimates in one place. This is a valuable resource for investors who want to stay up-to-date on the latest stock price movements.