Dj Netapp Inc. Stock Outperforms Competitors Despite Losses On The Day

Investors interested in Computer and Technology stocks should always be looking to find the best-performing companies in the group. Is CACI International (CACI) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Computer and Technology sector should help us answer this question.

CACI International is one of 618 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 groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.

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. CACI International is currently sporting a Zacks Rank of #2 (Buy).

The Zacks Consensus Estimate for CACI's full-year earnings has moved 1.5% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.

Our latest available data shows that CACI has returned about 76.8% since the start of the calendar year. In comparison, Computer and Technology companies have returned an average of 30.4%. This shows that CACI International is outperforming its peers so far this year.

One other Computer and Technology stock that has outperformed the sector so far this year is NetApp (NTAP). The stock is up 38.3% year-to-date.

In NetApp's case, the consensus EPS estimate for the current year increased 4.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).

Looking more specifically, CACI International belongs to the Computer - Services industry, a group that includes 10 individual stocks and currently sits at #73 in the Zacks Industry Rank. This group has gained an average of 21% so far this year, so CACI is performing better in this area.

In contrast, NetApp falls under the Computer- Storage Devices industry. Currently, this industry has 7 stocks and is ranked #23. Since the beginning of the year, the industry has moved +18.9%.

Investors interested in the Computer and Technology sector may want to keep a close eye on CACI International and NetApp as they attempt to continue their solid performance.

Zacks Investment Research

NetApp, Inc. NTAP recently announced an enhanced partnership with Red Hat, a premium provider of open-source solutions, to transform enterprise application development and management within virtual environments. By combining NTAP’s expertise in intelligent data infrastructure with the Red Hat OpenShift platform, the initiative empowers businesses to effortlessly manage on-premises and hybrid multi-cloud environments.

Businesses today face mounting pressure to innovate quickly and develop applications that streamline operations and create better outcomes for their customers. Red Hat OpenShift, built on Kubernetes, is widely adopted by major global organizations to streamline application lifecycles, enhance productivity and facilitate innovation in areas like artificial intelligence (AI).

With this expanded collaboration, NTAP is improving its data infrastructure, making Red Hat OpenShift environments more cost-effective and flexible. This aids customers in better managing, securing and protecting Kubernetes container workloads and virtual applications.

Key Components of the Enhanced NetApp-Red Hat Integration

A key aspect of this collaboration is the integration of NetApp Trident, a Container Storage Interface driver, with Red Hat OpenShift. This integration allows Red Hat OpenShift and Red Hat OpenShift Virtualization users to leverage NetApp ONTAP’s advanced storage capabilities, such as replication and disaster recovery.

With Trident, Red Hat OpenShift operations teams and DevOps teams gain simplified access to high-performance, all-flash storage that maintains persistence, ensuring continuity even as virtual machines or containers are created, modified, or removed. The new version of Trident, available at no additional cost, brings integrated protection, migration and disaster recovery capabilities. Also, it now supports Google Cloud NetApp Volumes, providing more options for cloud storage.

Another significant enhancement is the release of validated designs for Red Hat OpenShift Virtualization and Red Hat OpenShift AI deployments on Cisco FlexPod, NetApp’s converged infrastructure solution. With these validated designs, enterprises have greater assurance that their virtualized and AI-driven workloads will run smoothly within a unified environment.

As part of this collaboration, the companies are delivering a new integration between Red Hat OpenShift Dedicated and Google Cloud NetApp Volumes. This integration provides Red Hat OpenShift Dedicated customers with a first-party storage option on Google Cloud. With Google Cloud NetApp Volumes, organizations can now use enterprise storage built on NetApp ONTAP directly in Google Cloud, offering a managed environment optimized for high availability and performance.

Strategic Alliances Driving NTAP’s Revenue Prospects

NTAP’s continuous efforts to strengthen its collaborations with leading names not only drive greater innovation within businesses but also unlock new revenue streams for the company. In October 2024, NTAP expanded its partnership with Google Cloud by integrating unified data storage and intelligent services into the Google Distributed Cloud architecture. Google Distributed Cloud harnesses the power of NetApp's intelligent data infrastructure, backed by ONTAP and StorageGRID solutions, to boost its services, including databases, AI and analytics.

In September 2024, the company announced an advancement in generative AI, combining its data management expertise with NVIDIA’s AI software and accelerated computing. The partnership aims to augment enterprise retrieval augmented generation, unlocking the power of next-gen agentic AI. Apart from these, NTAP has strengthened its collaboration with Amazon Web Services to improve customer experiences through accelerated generative AI initiatives, simplified processes and valuable CloudOps solutions.

NetApp is also gaining from continued strength in demand for flash portfolio. Driven by momentum across flash, block, AI and cloud storage solutions, management has raised its guidance for fiscal 2025. It now expects revenues in the range of $6.48–$6.68 billion compared with the previous band of $6.45–$6.65 billion.

San Jose, CA-based-NTAP assists enterprises in managing multiple cloud environments, adopting next-generation technologies like AI, Kubernetes and contemporary databases, and navigating the complexity brought about by the quick development of data and cloud usage.

NTAP’s Zacks Rank & Stock Price Performance

NTAP currently carries a Zacks Rank #2 (Buy). Shares of the company have gained 58.9% in the past year compared with the sub-industry's growth of 33.6%.

Other Stocks to Consider

Some other top-ranked stocks from the broader technology space are Workday Inc. WDAY, Arista Networks, Inc. ANET and InterDigital, Inc. IDCC. IDCC & ANET presently sport a Zacks Rank #1 (Strong Buy), whereas WDAY carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

ANET provides cloud networking solutions for data centers and cloud computing environments. The company offers 10/25/40/50/100 gigabit Ethernet switches and routers optimized for next-generation data center networks. In the last reported quarter, it delivered an earnings surprise of 7.36%.

IDCC is a pioneer in advanced mobile technologies that enable wireless communications and capabilities. The company engages in designing and developing a wide range of advanced technology solutions, which are used in digital cellular as well as wireless 3G, 4G and IEEE 802-related products and networks. It has a long-term growth expectation of 17.44%

WDAY is a leading provider of enterprise-level software solutions for financial management and human resource domains. The company’s cloud-based platform combines finance and HR in a single system, making it easier for organizations to provide analytical insights and decision support. In the last reported quarter, it delivered an earnings surprise of 7.36%.

Zacks Investment Research

Investors interested in stocks from the Computer- Storage Devices sector have probably already heard of Teradata (TDC) and NetApp (NTAP). But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.

Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.

Currently, both Teradata and NetApp are holding a Zacks Rank of # 2 (Buy). The Zacks Rank favors stocks that have recently seen positive revisions to their earnings estimates, so investors should rest assured that both of these companies have improving earnings outlooks. But this is just one factor that value investors are interested in.

Value investors analyze a variety of traditional, tried-and-true metrics to help find companies that they believe are undervalued at their current share price levels.

Our Value category highlights undervalued companies by looking at a variety of key metrics, including the popular P/E ratio, as well as the P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that have been used by value investors for years.

TDC currently has a forward P/E ratio of 12.84, while NTAP has a forward P/E of 17.35. We also note that TDC has a PEG ratio of 1.78. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. NTAP currently has a PEG ratio of 3.71.

Another notable valuation metric for TDC is its P/B ratio of 22.44. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, NTAP has a P/B of 27.08.

These are just a few of the metrics contributing to TDC's Value grade of B and NTAP's Value grade of C.

Both TDC and NTAP are impressive stocks with solid earnings outlooks, but based on these valuation figures, we feel that TDC is the superior value option right now.

Zacks Investment Research

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.

The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.

It also includes access to the Zacks Style Scores.

What are the Zacks Style Scores?

The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.

Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.

The Style Scores are broken down into four categories:

Value Score

For value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.

Growth Score

Growth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum Score

Momentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM Score

If you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

How Style Scores Work with the Zacks Rank

The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.

It's highly successful, with #1 (Strong Buy) stocks producing an unmatched +25.41% average annual return since 1988. That's more than double the S&P 500. But because of the large number of stocks we rate, there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.

With more than 800 top-rated stocks to choose from, it can certainly feel overwhelming to pick the ones that are right for you and your investing journey.

That's where the Style Scores come in.

You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only as a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.

As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.

Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.

Stock to Watch: NetApp (NTAP)

NetApp provides enterprise storage as well as data management software and hardware products and services. The San Jose, CA based company assists enterprises in managing multiple clouds environments, adopting next-generation technologies like artificial intelligence (AI), Kubernetes, and contemporary databases, and navigating the complexity brought about by the quick development of data and cloud usage.

NTAP is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.

Additionally, the company could be a top pick for growth investors. NTAP has a Growth Style Score of A, forecasting year-over-year earnings growth of 9.6% for the current fiscal year.

For fiscal 2025, two analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.05 to $7.08 per share. NTAP boasts an average earnings surprise of 8.6%.

With a solid Zacks Rank and top-tier Growth and VGM Style Scores, NTAP should be on investors' short list.

Zacks Investment Research

Dubai, UAE – NetApp® , the intelligent data infrastructure company, has announced the opening of its Middle East regional headquarters in Riyadh, Saudi Arabia, to be officially functional on February 1, 2025. This strategic move underscores NetApp's dedication to supporting Saudi Arabia’s Vision 2030 and beyond, fostering innovation, and investing in the Kingdom's technology ecosystem. As Saudi Arabia drives its transformation into a global hub for AI and digital innovation, NetApp’s Intelligent Data Infrastructure will play a crucial role.

On his first visit to the Kingdom, George Kurian, Chief Executive Officer of NetApp, said: “Saudi Arabia is leading a technological transformation, and NetApp is proud to be an integral part of this journey. By establishing our headquarters in Riyadh, we reaffirm our commitment to investing in local talent, empowering businesses, and supporting the Kingdom’s goal of building an AI-driven economy. To thrive in the era of AI, businesses need Intelligent Data Infrastructure—systems where data is not merely stored but becomes a strategic advantage. At NetApp, we are dedicated to providing the infrastructure that enables our customers in the Kingdom to scale and innovate.”

NetApp’s investment in Saudi Arabia reflects its global strength as a leading data infrastructure company, with 13,000 employees and an annual revenue of $6.27 billion in FY24. Having served Saudi Arabia since 2007, NetApp supports customers in major public sector, utilities, telecoms, and energy, among others. NetApp is fully aligned with Saudi Arabia's Vision 2030, which aims to diversify the economy beyond energy and focus on digital transformation. NetApp’s regional headquarters in Riyadh which will be fully operational in February 2025, will enable the company to support better the Kingdom’s growing demand for advanced AI and data analytics solutions and reaffirm the company's long-term commitment to the Kingdom.

“Saudi Arabia’s rapid pace of modernization, coupled with its deep technical knowledge at the leadership level, makes the Kingdom a prime market for technology adoption. Businesses here are eager to implement cutting-edge AI and digital government services, positioning the country to lead in the region’s technological future,” added Kurian.

He also highlighted that Saudi Arabia’s rapid economic growth, government initiatives, and focus on AI are key factors in NetApp's decision to strengthen its presence in the Kingdom. “The government’s push for world-class talent and foreign direct investment is expected to continue driving technological modernization, which NetApp is excited to support” he added.

Saudi Arabia has a definitive vision for its future development and its focus on AI is accelerating rapidly. The country is positioned to gain significantly from AI advancements, with a clear strategic vision and commitment from the government. According to a report from PwC, AI is expected to contribute over $135.2 billion to the Saudi economy by 2030, which would represent approximately 12.4% of the country's GDP. Vision 2030 aims to cultivate a more diversified and innovative nation that empowers its citizens to succeed. Notably, 70% of the objectives outlined in this plan are directly linked to data and AI.

Aligned with this vision, NetApp’s strategy in Saudi Arabia centers on providing intelligent data infrastructure that drives AI transformation across energy, telecoms, government, and other key sectors. NetApp’s collaborations with cloud giants like Amazon, Microsoft, and Google and its partnerships with Nvidia for AI applications are integral to supporting Saudi Arabia’s plans for digital government services and AI advancement.

“I am proud to say that the world’s data runs on NetApp. With this comes the responsibility to keep that data secure, scalable, smart, and sustainable,” added Kurian. “In Saudi Arabia, where digital transformation is crucial to achieving Vision 2030, our data solutions and support will empower businesses across key sectors to make informed decisions in real-time, enhancing both sustainability and business resilience even in complex multi-cloud environments. We are honored to support the Kingdom's journey towards an AI-driven, diversified economy and help shape a more sustainable, technologically advanced future.”

With the Kingdom’s emphasis on digital transformation and a growing tech ecosystem, NetApp’s presence in Saudi Arabia positions it closer to its local customers and partners to ensure they get all the support the need to grow sustainably.

The company’s commitment also extends to nurturing local talent through skill development initiatives, empowering the next generation to thrive in an AI-driven landscape. NetApp works closely with universities and other educational institutions to develop curricula in data science and AI.

Programs like the Data Explorers initiative for young students emphasize the importance of building a tech-savvy workforce, well-equipped to contribute to Saudi Arabia’s digital future.

By harnessing advanced data capabilities, key sectors in the Kingdom are enhancing operational agility, driving innovation, and contributing to Vision 2030’s goals of economic diversification and technological leadership. Through intelligent data management and optimized infrastructure, NetApp enables organizations to maximize data potential across its lifecycle, empowering smart decision-making and fostering a thriving tech ecosystem.

Media Contact:

Amber Dale

amberdale@chatterbox-pre.com

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