NetApp Could Score Traders 20% Profits in 3 Months

by Sam Collins | July 3, 2013 1:53 am

NetApp (NTAP[1]) — This company provides enterprise storage and data management software globally. Its fabric-attached storage (FAS) offers storage for various platforms including cloud environments.

The company has an impressive record of earnings growth, robust revenue growth, and expanding profit margins. On June 11, S&P upgraded NTAP to “buy” from “hold.” They increased their fiscal year (FY) 2014 (ending in April) operating EPS by $0.11 to $2.65, and look for $3.12 in FY 2015 and $3.46 in FY 2016. Their target price is $46.

Since my last comment on NTAP on June 14[2], at $ 38.46, the stock has extended the handle from the breakout of a cup-and-handle formation. On June 25, it pulled back to a low of $37.07, where our internal indicator, the Collins-Bollinger Reversal (CBR), kicked in with a new buy signal. And on Tuesday, the stochastic indicator flashed a new buy signal.

Buy NTAP at the market with a three-month target of $46. The stock currently yields 1.6%.

NTAP Chart
Click to Enlarge

Chart Key[3]

  1. NTAP:
  2. on June 14:
  3. [Image]:

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