In the latest trading session, Pure Storage (PSTG) closed at $57.59, marking a +1.11% move from the previous day. The stock outperformed the S&P 500, which registered a daily gain of 0.4%. Meanwhile, the Dow experienced a rise of 0.47%, and the technology-dominated Nasdaq saw an increase of 0.24%.
Coming into today, shares of the data storage company had gained 2.41% in the past month. In that same time, the Computer and Technology sector gained 6.84%, while the S&P 500 gained 4.61%.
Market participants will be closely following the financial results of Pure Storage in its upcoming release. In that report, analysts expect Pure Storage to post earnings of $0.4 per share. This would mark a year-over-year decline of 9.09%. Meanwhile, our latest consensus estimate is calling for revenue of $845.76 million, up 10.74% from the prior-year quarter.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.82 per share and a revenue of $3.52 billion, representing changes of +7.69% and +11.01%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Pure Storage. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.39% downward. Currently, Pure Storage is carrying a Zacks Rank of #3 (Hold).
Investors should also note Pure Storage's current valuation metrics, including its Forward P/E ratio of 31.33. This expresses a premium compared to the average Forward P/E of 13.54 of its industry.
It's also important to note that PSTG currently trades at a PEG ratio of 1.68. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As the market closed yesterday, the Computer- Storage Devices industry was having an average PEG ratio of 2.02.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 68, positioning it in the top 28% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Pure Storage, Inc. (PSTG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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