As December approaches, investors are keenly eyeing NetApp Inc., a prominent player in the Technology Hardware, Storage & Peripherals sector, to see if it can deliver meaningful returns. With a solid operating margin of 19.47%, NetApp demonstrates robust operational efficiency, which could be a positive indicator for potential investors. However, the company's recent financials show a change in cash of 413 million, signaling some challenges in cash flow management. As analysts maintain a consensus 'Buy' rating, the market is watching closely to see if NetApp can navigate these financial dynamics and unlock value for its shareholders this holiday season. Today, it seems Titan Machinery's recovery from its recent dip might lag, with its shares rising only 0.36% compared to NetApp's 1.02% increase. While some traders are caught up in dissecting the competition in the tech hardware and storage sector, it's worth considering both NetApp and Titan Machinery as viable short-term investment opportunities. Let's delve into some of the competitive factors influencing these two companies.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as NetApp or Brunswick is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
understanding NetApp dividends
A dividend is the distribution of a portion of NetApp earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. NetApp dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. NetApp one year expected dividend income is about USD1.35 per share.
At this time, NetApp's
Dividend Yield is relatively stable compared to the past year. As of 11/21/2024,
Dividend Payout Ratio is likely to grow to 0.58, though
Dividends Paid is likely to grow to (395.2
M).
Investing in dividend-paying stocks, such as NetApp Inc is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in NetApp must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for NetApp. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
How important is NetApp's Liquidity
NetApp
financial leverage refers to using borrowed capital as a funding source to finance NetApp Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. NetApp financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to NetApp's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of NetApp's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between NetApp's total debt and its cash.
Correlation Between NetApp and Brunswick
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding NetApp together with similar or unrelated positions with a negative correlation. For example, you can also add Brunswick to your portfolio. If Brunswick is not perfectly correlated to NetApp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When NetApp, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both NetApp and Brunswick in your portfolio? Please note if you are using this as a pair-trade strategy between NetApp and Brunswick, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between NTAP and BC for more information.
Breaking down NetApp Indicators
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Revenue Breakdown
Let me now analyze NetApp revenue. Based on the latest financial disclosure, NetApp Inc reported 6.27
B of revenue.
This is 53.79% higher than that of the Technology Hardware, Storage & Peripherals sector and significantly higher than that of the
Information Technology industry. The revenue for all United States stocks is 33.57% higher than that of NetApp. As for Titan Machinery we see revenue of 2.76
B, which is much higher than that of the Information Technology
| NetApp | 6.27 Billion |
| Sector | 0.0 |
| Titan | 2.76 Billion |
Warren Buffett once said, "Price is what you pay; value is what you get." This December, investors are eyeing NetApp Inc. (NTAP) with anticipation, as the company shows promising signs of value creation. With a robust operating cash flow of $1.69 billion and a solid EPS estimate of $6.46 for the current year, NetApp is positioned to potentially deliver substantial returns. The stock's current ratio of 1.38X indicates a healthy liquidity position, suggesting that NetApp is well-equipped to meet its short-term obligations. As the market looks for stability and growth, NetApp's strategic positioning in the technology hardware sector could unlock significant value for investors..
NetApp technical analysis connotes possible turnaround
NetApp Inc's stock is showing signs of a potential turnaround, highlighted by its kurtosis measure surpassing 9.88. This suggests increased volatility, often a precursor to significant stock movement. Such changes might indicate that investors are adjusting their expectations, possibly due to new strategic moves or shifting market conditions. For those monitoring NetApp, this could be a good time to reconsider its role in a diversified portfolio, as the stock might be on the verge of a notable shift.
Despite its low volatility, with a skewness of -2.15 and kurtosis of 9.88, understanding these trends can help investors time the market. High volatility in bear markets can affect NetApp's stock price, prompting investors to rebalance their portfolios by acquiring different assets as prices drop.As we look toward 2024, NetApp Inc.
stands at a pivotal juncture. With an analyst overall consensus of "Buy" and a valuation real value of 101.68, the company presents a compelling case for investors seeking growth opportunities. However, it's important to weigh this against the analyst target price estimated value of 80.67, which suggests a more cautious outlook. With a fiscal year ending in April, investors should closely monitor upcoming earnings reports and strategic developments. Whether NetApp will soar to new heights or face challenges, its performance in the coming year will be critical in shaping its future trajectory. For those considering an investment, it's essential to stay informed and ready to adapt as the company's story unfolds..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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