Pure Storage (PSTG) closed the most recent trading day at $41.95, moving +1.7% from the previous trading session. The stock outperformed the S&P 500, which registered a daily loss of 0.17%. At the same time, the Dow lost 0.39%, and the tech-heavy Nasdaq lost 0.05%.
Shares of the data storage company witnessed a loss of 18.62% over the previous month, trailing the performance of the Computer and Technology sector with its loss of 6.26% and the S&P 500's loss of 3.94%.
Analysts and investors alike will be keeping a close eye on the performance of Pure Storage in its upcoming earnings disclosure. The company is predicted to post an EPS of $0.25, indicating a 21.88% decline compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $771.15 million, up 11.2% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.72 per share and revenue of $3.51 billion, which would represent changes of +1.78% and +10.86%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Pure Storage. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.61% lower. Pure Storage presently features a Zacks Rank of #3 (Hold).
In terms of valuation, Pure Storage is currently trading at a Forward P/E ratio of 23.97. For comparison, its industry has an average Forward P/E of 11.52, which means Pure Storage is trading at a premium to the group.
It is also worth noting that PSTG currently has a PEG ratio of 1.43. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. By the end of yesterday's trading, the Computer- Storage Devices industry had an average PEG ratio of 1.43.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 57, finds itself in the top 23% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming 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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