NTAP Stock Analysis — NetApp
Sector: Tech hardware
AI Verdict
NetApp is cheap for the growth you're getting at 19.6x forward earnings and 41.0% EPS growth, but the sky-high RSI signals real risk of a near-term pullback even if the moat is real.
Competitive Moat
NetApp specializes in enterprise data storage and management, with a defensible position due to its proprietary ONTAP software platform that integrates tightly with major cloud providers. Its hybrid cloud data services and long-standing enterprise relationships create switching costs that protect its core business.
Summary
NetApp is in focus after a 69.44% 1-year return and a forward P/E of 19.6x with 41.0% EPS growth expected.
Where It Stands
The stock is extremely overbought with an RSI of 91.1, trades at 19.6x next year's earnings (below the tech hardware median of 25x), and has delivered a 69.44% return over the past year.
Key Metrics
- RSI: 91.1 — Overbought
- Trailing P/E: 27.7x
- Forward P/E: 19.6x
- PEG Ratio: 0.64
- Earnings Growth: +0.4%
- Revenue Growth: +0.1%
- Market Cap: $34.7B
- Dividend Yield: 0.01%
- 1-Year Return: 69.44%
- 52-Week High: $192.83
- 52-Week Low: $93.69
Analyst Consensus
12 Buy · 15 Hold · 1 Sell (28 analysts)
Bull Case
You're paying 19.6x forward earnings for 41.0% expected EPS growth, which is cheap for the growth on offer if NetApp's software-driven storage moat holds up.
Bear Case
With an RSI of 91.1, the stock is at extreme overbought levels, so even a modest pullback to a neutral RSI could mean a double-digit percentage drop from here.
Catalyst to Watch
Watch for upcoming earnings and any guidance on cloud partnership traction — a miss on growth could trigger sharp multiple compression.