In the latest close session, Pure Storage (PSTG) was up +1.79% at $95.47. This move outpaced the S&P 500's daily gain of 1.23%. Meanwhile, the Dow experienced a rise of 0.72%, and the technology-dominated Nasdaq saw an increase of 1.86%.
The data storage company's stock has climbed by 13.82% in the past month, exceeding the Computer and Technology sector's gain of 3.49% and the S&P 500's gain of 2.45%.
Investors will be eagerly watching for the performance of Pure Storage in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of $0.59, marking a 18% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $956.49 million, showing a 15.09% escalation compared to the year-ago quarter.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.97 per share and revenue of $3.62 billion. These totals would mark changes of +16.57% and +14.22%, respectively, from last year.
Investors should also take note of any recent adjustments to analyst estimates for Pure Storage. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.78% higher. Pure Storage is holding a Zacks Rank of #3 (Hold) right now.
With respect to valuation, Pure Storage is currently being traded at a Forward P/E ratio of 47.61. This denotes a premium relative to the industry average Forward P/E of 19.03.
We can additionally observe that PSTG currently boasts a PEG ratio of 2.83. 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 2.05.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 62, this industry ranks in the top 26% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our individual 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming 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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