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NetApp shares final traded for $100 again in 2000. 
Nevertheless, after this week’s earnings report, they may quickly be again there. 
This inventory has a ton of alternative, because the report caught traders napping. 
5 shares we like higher than NetApp
NetApp, Inc. NASDAQ: NTAP must be one of many few remaining tech shares on the market that hasn’t but reclaimed its highs from the Dot Com bubble. Invoice Clinton was nonetheless within the White Home when NetApp shares final set a document, and whereas it might be a while earlier than that’s topped, there’s a ton of alternative opening up. 
The information inventory has been rallying for the reason that begin of the 12 months, and whereas it wasn’t precisely knocking anybody’s socks off, its shares had gained about 30% coming into this week. For context, the benchmark S&P 500 index was up about 20% in the identical timeframe, so NetApp was nearly managing to outperform the market. 
Heading into the final month of the 12 months, nonetheless, that’s all modified. The San Jose-based firm launched their Q2 earnings earlier this week, which caught analysts napping in the absolute best method. Whereas nonetheless down 12 months on 12 months, topline income comfortably beat expectations for a a lot deeper contracting, whereas the corporate’s earnings per share got here in 13% increased than the consensus. 
Bullish outlook
Delivering a beat on the headline numbers is all the time a great way to start out a report, notably for shares like NetApp, which are likely to commerce with a bit extra lethargy than their extra well-known friends. However the report solely acquired higher from there, with the corporate’s ahead income and earnings steering additionally smashing expectations. With the ability to ship an upside shock right here is de facto the sort of factor Wall Avenue needs to see, because it means a inventory has nearly definitely been mispriced and is undervalued, and so a significant recalculation is required. When it’s a shock to the upside, meaning features and large ones. Having began the week with a 30% acquire to this point this 12 months, NetApp shares look set to shut out the week with a 50% acquire for the 12 months thus far. They gapped up 10% on Wednesday’s open as traders rushed to get in on the motion, and people features continued all via yesterday’s session, too. Having traded largely sideways since July, NetApp inventory is now up 16% in simply two days and coming inside touching distance of final 12 months’s excessive. 
It wants about one other 5% push to hit it, and given the quantity on the bid in yesterday’s session, it’s not onerous to see that being delivered within the very close to future. This is able to put NetApp shares just below the $100 mark, a degree they haven’t traded at since they imploded again in November 2000. 
Getting concerned
It’s an fascinating flip of occasions, given it was solely two weeks in the past that Financial institution of America was urging warning on the inventory. Forward of NetApp’s earnings launch, the group at BoA took a bearish stance on the approaching quarters and mentioned they anticipated some medium-term weak spot. This was based mostly on broader trade phrases, specifically round company spending on information storage software program, which they mentioned has turned “cautious.” 
Nevertheless, with a report like Tuesday’s firmly placing paid to any issues a few protracted slowdown, it appears to be like just like the Financial institution of America group has gotten this one mistaken. On the again of the corporate’s extra bullish-than-expected outlook, the group at TD Cowen had no qualms reiterating their Outperform score on the inventory and boosting their value goal. They upped it to a avenue excessive of $100, additional underlining the power within the inventory and its capability for additional features within the coming weeks. 
For these of us on the sidelines, it’s time to be weighing up a place. Certain, the inventory has popped onerous this week, and it would really feel such as you’re chasing it, however actually, what’s taking place is that it’s going via a basic re-pricing train. The extra damaging situations which may have been beforehand feared haven’t come to cross, and shares are on the verge of breaking via their highest degree in additional than twenty years. NetApp shares have each the basics and technicals supporting them, and there’s each motive to assume they’ll rally all the way in which into 2024. Earlier than you think about NetApp, you may need to hear this.Whereas NetApp at present has a “Maintain” score amongst analysts, top-rated analysts imagine these 5 shares are higher buys.View The 5 Shares Right here Click on the hyperlink under and we’ll ship you MarketBeat’s checklist of seven shares and why their long-term outlooks are very promising. Get This Free Report

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