NETGEAR, Inc. (NTGR) Hit a 52 Week High, Can the Run Continue?

Shares of NETGEAR, Inc. (NTGR) have been strong performers lately, with the stock up 19.1% over the past month. The stock hit a new 52-week high of $34.49 in the previous session. NETGEAR has gained 19.6% since the start of the year compared to the 23.6% gain for the Zacks Computer and Technology sector and the 15.4% return for the Zacks Computer - Networking industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on July 30, 2025, NETGEAR reported EPS of $0.06 versus consensus estimate of -$0.16 while it beat the consensus revenue estimate by 5.25%.For the current fiscal year, NETGEAR is expected to post earnings of -$0.02 per share on $690.39 in revenues. This represents a 97.8% change in EPS on a 2.47% change in revenues. For the next fiscal year, the company is expected to earn $0.14 per share on $715.35 in revenues. This represents a year-over-year change of 799.99% and 3.62%, respectively.Valuation MetricsThough NETGEAR has recently hit a 52-week high, what is next for NETGEAR? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.NETGEAR has a Value Score of C. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of B.Zacks RankWe also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, NETGEAR currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if NETGEAR fits the bill. Thus, it seems as though NETGEAR shares could still be poised for more gains ahead.How Does NTGR Stack Up to the Competition?Shares of NTGR have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is NetScout Systems, Inc. (NTCT). NTCT has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of B, and a Momentum Score of B.Earnings were strong last quarter. NetScout Systems, Inc. beat our consensus estimate by 17.24%, and for the current fiscal year, NTCT is expected to post earnings of $2.35 per share on revenue of $848.33 million.Shares of NetScout Systems, Inc. have gained 5% over the past month, and currently trade at a forward P/E of 11.2X and a P/CF of 3.2X.The Computer - Networking industry is in the top 18% of all the industries we have in our universe, so it looks like there are some nice tailwinds for NTGR and NTCT, even beyond their own solid fundamental situation.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NETGEAR, Inc. (NTGR): Free Stock Analysis Report NetScout Systems, Inc. (NTCT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks