NetApp Stock Rides An 8-Day Winning Streak To A 17% Gain
Shares of NetApp (NTAP) have closed higher in each of the last 8 sessions, a cumulative gain of 17.3%. That added about $6.5 billion to the company’s market value, which now stands at about $44.3 billion. The stock closed at $226.27 on Friday, October 2, its highest close of the past year.
How The Streak Stacks Up Against The S&P 500
Returns for NTAP and the S&P 500 over the streak and the periods around it, all ending Friday, October 2 and including dividends:
| Return Period | NTAP | S&P 500 |
|---|---|---|
| 1 Day | 5.2% | 0.7% |
| 8 Days (Current Streak) | 17.3% | -0.5% |
| 1 Month (21 Trading Days) | 25.2% | 0.8% |
| 3 Months (63 Trading Days) | 38.8% | 2.7% |
| Year To Date | 114.1% | 13.8% |
| 1 Year (252 Trading Days) | 94.3% | 16.4% |
A Stock-Specific Run, Or A Market Move?
Over the same 8 trading days, the S&P 500 returned -0.5% including dividends, so the run is mostly NetApp’s own story rather than the market’s. No other S&P 500 stock is currently on a winning streak of 8 days or longer. Over the past three months the stock is up 38.8%, a window that includes the streak; over the other 55 sessions of that window it was up 18.3%.
What The Numbers Say About The Rally
On the fundamentals, revenue grew 12.2% over the last twelve months, against a median of 17.9% for S&P 500 Information Technology stocks; its operating margin is 26.0%, versus a median of 21.7%; and the stock trades at 31.3 times trailing earnings against a median of 37.2. The read is mixed: margins above the median and a multiple below the median on one side, revenue growth below the median on the other.
A climb like this is worth respecting, and worth testing. Our Guidance Momentum screen tracks the stocks whose companies just raised their own forward numbers.
One Hot Stock Is A Story. Thirty Sound Ones Are A Strategy
A streak like this earns a place on your watchlist, and it also earns a question: how much of your outcome do you want depending on one company keeping this up?
The Trefis High Quality (HQ) Portfolio answers it with breadth: roughly 30 businesses picked for consistent cash generation, strong margins, and balance-sheet strength, sized and rebalanced by rules. It has a track record of outpacing a benchmark that combines the S&P 500, the S&P MidCap 400, and the Russell 2000. Follow the story; invest in the strategy.