Here is why NETGEAR’s amazing stock run could continue in 2021
NETGEAR, Inc. (NASDAQ: NTGR) is a global computer networking company based in San Jose, California, with offices located around the world. The company delivers products to consumers, businesses, and service providers. NETGEAR’s product line consists of wired and wireless devices that enable networking, broadband access, and network connectivity.
At first glance, the biggest issue for NETGEAR seems to be its valuation. The company’s price-earnings ratio has risen to a sky-high 47.97 after its recent stock run. Aside from that, another issue is the company’s inconsistent revenue and net income growth in the past. However, over the last year, NETGEAR has added over $900,000 in revenue, bringing its total to $1.141 million.
NETGEAR’s fourth quarter and full-year financial results for 2020 are set to be released after the market closes on Wednesday, Feb. 3. Regarding the company’s recent earnings performance, NETGEAR has beat its earnings expectations on all four quarters of 2020.
For the fourth quarter of 2019, the computer name beat expectations by a margin of $0.05 and reported an earnings per share (EPS) of $0.34. For the first quarter of 2020, the equity reported a decline to its EPS to $0.21 but beat earnings expectations once again by a margin of $0.05. NETGEAR reported big increase in earnings for the second quarter of 2020, an EPS of $0.54, beating expectations by a significant margin of $0.32. In its most recent quarterly report, NETGEAR boasted earnings of $1.13 per share.
As a result of its sweep of beats in the earnings confessional, NTGR stock has seen some incredible gains. NETGEAR stock has gone on a massive bull run this past year and continued its bullish form in 2021, even reaching a more than 52-week high of $46.38 on Jan. 27. NTGR has grown 66% year-over-year, and tripled in price since bottoming at $15.01 last March.