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NetApp, Inc. (NTAP)

NetApp stock forecast: buy or sell

Close on Oct 23rd, 2020
$46.89 +0.41%
3 months performance
7.60%
Published: October 24th, 2020 - 12.20am EDT

NetApp stock outlook

  • NetApp closed yesterday at $46.89 after just moving a 0.41% and broke a streak of 3 sessions in red.
  • The stock is configuring an uptrend pattern since last March, when it bottomed at $33.50. Up to date, shares marked a 39.97% gain since the beginning of this rally
  • Summit Insights published a strong buy rating for NetApp yesterday
  • NetApp, Inc. provides software, systems, and services to manage and share data on-premises, and private and public clouds worldwide.

Please read:
The opinions given in this article are personal and should not be followed as recommendations for you to buy or sell shares. The author of this paper does not have any knowledge of the particular circumstances of the reader, his or her own finances or what is in his or her best interest at any given time. All users should speak with their financial advisor before buying or selling any securities Viewpoints are expressed for education reasons only

NetApp stock charts

Should I buy NetApp stock?

All successful traders recommend adhering to a trading strategy and not make decisions based on subjective opinions, rumors or feelings. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we like to use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best

Is $NTAP stock a buy?

Currently, NetApp stock doesn't match any of these trading strategies, so our recommendation is not to buy now. This doesn't mean $NTAP will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems

Should I sell NetApp stock?

"To sell or not to sell", if you are holding NetApp shares?. Trading strategies prevent us from making impulsive decisions based on our sentiments or the buzz surrounding the market. Our trading system selects very simple strategies to guide us on when is a good time to sell our shares. Be aware that these strategies should not be used for shorting $NTAP stock

A golden rule is that you must never hold an investment that generates losses greater than those expected at the time of purchase. The timing to sell your stock should always be determined by the stop-loss (automatic or manual)

Is it time to sell NetApp stock?

In the current situation of NetApp there is not any eligible sell setup, so NetApp stock holders with operations in profit can keep their positions

Analysts' recommendations to buy or sell NetApp stock

Brokerage firms and financial institutions post stock ratings based on their views of the market and the fundamental and technical situation of the analyzed stock. Unfortunately, the accuracy of these predictions is not very high, and certainly not a direct buy or sell signal

In the last month, 2 brokerage ratings were published for NetApp

NetApp ratings

Brokerage firmRating
Oct 13th, 2020
Morgan Stanley
Oct 23rd, 2020
Summit Insights NeutralStrong buy

Technical analysis

NetApp stock started an uptrend last March, and grew a gorgeous 39.97%. The price action shows higher peaks and higher troughs, and along the way gave some buy points for those who wanted to enter. Latest pullback was in late September, when price bounced at $40.02. Currently, it swings in a consolidation between its last top ($48.94) and its last bottom ($40.02)

SMAs overview

Moving averages are simple indicators for investors to gauge direction. A moving average is calculated as the simple mean of the previous N periods (usually sessions). Usual time periods used for moving averages are 21 days, 50 days, 100 days and 200 days

NTAP SMAs chart

Supports and resistances

Market investors use support and resistance levels to find price points in the stock price action that may behave as barriers, preventing the price of shares to move up or down. A support level is a level where the price tends to stop as it falls. Price is more likely to "bounce off" this level rather than break through it. Nevertheless, if the price breaks down this level, it will probably continue falling until meeting another support level. On the contrary, resistance levels are where the price may find a curb as it rises. In the same way, the price is more liable to "rebound" at this level, and if it finally breaches this level, the price will climb easily until it hits the next resistance

The current resistance levels are:

  • R1: $47.26 (0.79% above)
  • R2: $47.31 (0.9% above)
  • R3: $47.81 (1.96% above)
  • The current supports are:

  • S1: $46.82 (-0.15% below)
  • S2: $45.92 (-2.07% below)
  • S3: $45.66 (-2.62% below)
  • Bollinger bands

    The so-called Bollinger bands are a popular studio designed by John Bollinger. By essence, the Bollinger Bands are bands that move around a moving averagediffering in distance from the bottom to the top depending on market volatility. They are usually drawn by an offset of two standard deviations, above and below, from a moving average line. Bollinger himself recommends the moving average period to be 20

    Since the price surpassed the upper band on October 13, the price has corrected downwards by 1.86%

    NTAP RSI chart

    Relative strength index

    The RSI (Relative Strength Index) is an oscillator-type indicator that gauges price changes to identify when the price of a share or financial asset is oversold or overbought. Oscillator indicators, such as relative strength, are intended to indicate values in the range of 0-100. J. Welles Wilder introduced the relative strength indicator in the late 1970s and since then it has been widely used by stock traders

    The Relative Strength Indicator (RSI) has been between the levels of 70 and 30 for some weeks, and therefore, without this indicator really being of any help to us in making any decisions.

    NTAP RSI chart

    Earnings and financials

    In late August, NetApp, Inc. ($NTAP) reported EPS for fiscal 1st-quarter that highly surpassed Market expectations. Quarterly EPS was $0.73 per share from an estimated $0.41. This Q1 report represents an earnings surprise of 78.05%.

    In comparison, the EPS for the same quarter last year was $0.65, so posted EPS means a improvement of 12.31%.

    NetApp ($NTAP) is hosting the quarterly earnings call on mid next November. Expected earnings per-share for this quarter is $0.73, compared to $0.73 that was reported for Q1.

    NTAP revenues and profits chart