Pure Storage (PSTG) ended the recent trading session at $66.98, demonstrating a +1.95% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.65%. Meanwhile, the Dow experienced a rise of 0.48%, and the technology-dominated Nasdaq saw an increase of 0.82%.
Prior to today's trading, shares of the data storage company had lost 13.41% lagged the Computer and Technology sector's loss of 1.6% and the S&P 500's gain of 1.15%.
Market participants will be closely following the financial results of Pure Storage in its upcoming release. On that day, Pure Storage is projected to report earnings of $0.65 per share, which would represent year-over-year growth of 44.44%. Meanwhile, the latest consensus estimate predicts the revenue to be $1.03 billion, indicating a 17.27% increase compared to the same quarter of the previous year.
PSTG's full-year Zacks Consensus Estimates are calling for earnings of $1.95 per share and revenue of $3.63 billion. These results would represent year-over-year changes of +15.38% and +14.73%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Pure Storage. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.63% higher. Currently, Pure Storage is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Pure Storage is currently trading at a Forward P/E ratio of 33.67. This signifies a premium in comparison to the average Forward P/E of 19.35 for its industry.
It's also important to note that PSTG currently trades at a PEG ratio of 1.99. 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 1.88.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 22, finds itself in the top 9% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding 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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