What Makes NetScout Systems Inc. (NASDAQ: NTCT) One Of The Best Momentum Picks?

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NetScout Systems Inc. (NASDAQ:NTCT) shares, rose in value on Thursday, 11/04/21, with the stock price up by 0.21% to the previous day’s close as strong demand from buyers drove the stock to $33.12.

Actively observing the price movement in the last trading, the stock closed the session at $33.05, falling within a range of $32.41 and $34.87. The value of beta (5-year monthly) was 0.81 whereas the PE ratio was 96.84 over 12-month period. Referring to stock’s 52-week performance, its high was $33.54, and the low was $20.35. On the whole, NTCT has fluctuated by 21.32% over the past month.

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With the market capitalization of NetScout Systems Inc. currently standing at about $2.43 billion, investors are eagerly awaiting this quarter’s results, scheduled for Jan 26, 2022 – Jan 31, 2022. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be $0.38, which is expected to increase to $0.64 for fiscal year $1.76 and then to about $1.92 by fiscal year 2023. Data indicates that the EPS growth is expected to be 3.50% in 2023, while the next year’s EPS growth is forecast to be 9.10%.

Analysts have estimated the company’s revenue for the quarter at $206.33 million, with a low estimate of $204.2 million and a high estimate of $210.88 million. Wall Street analysts also predicted that in 2023, the company’s y-o-y revenues would reach $850.75 million, representing an increase of 2.30% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that NTCT’s technical picture suggests that short-term indicators denote the stock is a 50% Buy on average. However, medium term indicators have put the stock in the category of 50% Sell while long term indicators on average have been pointing out that it is a 50% Buy.

4 analyst(s) have assigned their ratings of the stock’s forecast evaluation on a scale of 1.00-5.00 to indicate a strong buy to a strong sell recommendation. The stock is rated as a Hold by 4 analyst(s), 0 recommend it as a Buy and 0 called the NTCT stock Overweight. In the meantime, 0 analyst(s) believe the stock as Underweight and 0 think it is a Sell. Thus, investors eager to increase their holdings of the company’s stock will have an opportunity to do so as the average rating for the stock is Hold.

The stock’s technical analysis shows that the PEG ratio is about 54.41, with the price of NTCT currently trading nearly 19.47% and 21.04% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 83.22, while the 7-day volatility ratio is showing 5.87% which for the 30-day chart, stands at 2.83%. Furthermore, NetScout Systems Inc. (NTCT)’s beta value is 0.71, and its average true range (ATR) is 1.05. The company’s stock has been forecasted to trade at an average price of $32.25 over the course of the next 52 weeks, with a low of $29.00 and a high of $35.00. Based on these price targets, the low is 12.44% off current price, whereas the price has to move -5.68% to reach the yearly target high. Additionally, analysts’ median price of $32.50 is likely to be welcomed by investors because it represents an increase of 1.87% from the current levels.

A comparison of NetScout Systems Inc. (NTCT) with its peers suggests the former has fared considerably weaker in the market. NTCT showed an intraday change of 0.21% in last session, and over the past year, it grew by 61.56%%. In comparison, Viavi Solutions Inc. (VIAV) has moved higher at 0.18% on the day and was up 31.40% over the past 12 months. On the other hand, the price of Jack Henry & Associates Inc. (JKHY) has fallen -0.30% on the day. The stock, however, is off -2.32% from where it was a year ago. Additionally, there is a gain of 0.26% for HP Inc. (HPQ) in last trading while the stock has seen an overall depriciation of 71.39%% over the past year. The PE ratio stands at 96.84 for NetScout Systems Inc., compared to 83.91 for Viavi Solutions Inc., and 38.55 for Jack Henry & Associates Inc. Other than that, the overall performance of the S&P 500 during the last trading session shows that it gained 0.42%. Meanwhile, the Dow Jones Industrial Slipped by -0.09%.

Data on historical trading for NetScout Systems Inc. (NASDAQ:NTCT) indicates that the trading volume over the past 3 months, they’ve averaged 389.25K. According to company’s latest data on outstanding shares, there are 73.86 million shares outstanding.

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Nearly 1.20% of NetScout Systems Inc.’s shares belong to company insiders and institutional investors own 97.70% of the company’s shares. The stock has risen by 20.79% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the NTCT stock heading into the next quarter.