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NetScout Systems Inc (NTCT) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company shows some positive financial trends, such as increased net income and EPS, the lack of significant trading signals, neutral sentiment from hedge funds and insiders, and limited upside potential in the short term make it more prudent to hold off on investing right now. The stock's technical indicators are moderately bullish, but the absence of strong catalysts or recent positive news limits its attractiveness.
The technical indicators for NTCT are moderately bullish. The MACD is positive and expanding, the RSI is neutral at 60.61, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). The stock is trading near its resistance level of 28.73, with a pivot at 27.694. However, the stock's short-term trend suggests limited upside potential, with a 30% chance of a -1.29% decline in the next day and a -3.59% decline in the next week.

The company's financial performance in Q3 2026 shows positive growth in net income (+12.97% YoY) and EPS (+11.94% YoY). Gross margin also improved slightly to 77.19%. Additionally, the MACD and moving averages suggest a bullish technical setup.
Analyst sentiment is neutral, with RBC Capital lowering the price target from $31 to $29 and maintaining a Sector Perform rating. There is no recent news or significant insider/hedge fund activity. Options data indicates low trading activity, and the stock's short-term trend suggests potential downside.
In Q3 2026, NetScout's revenue declined slightly by -0.53% YoY to $250.68M. However, net income increased by 12.97% YoY to $55.14M, and EPS rose by 11.94% YoY to 0.75. Gross margin improved marginally to 77.19%, indicating operational efficiency.
RBC Capital recently lowered the price target for NTCT from $31 to $29, maintaining a Sector Perform rating. Analysts suggest that enterprise spending is stabilizing, but there is no strong indication of immediate growth catalysts for NTCT.