In the latest trading session, Pure Storage (PSTG) closed at $72.36, marking a +2.54% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.26%. Elsewhere, the Dow gained 0.6%, while the tech-heavy Nasdaq added 0.25%.
Shares of the data storage company witnessed a gain of 6.41% over the previous month, beating the performance of the Computer and Technology sector with its gain of 1.58%, and the S&P 500's gain of 1.57%.
The investment community will be closely monitoring the performance of Pure Storage in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.65, reflecting a 44.44% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $1.03 billion, reflecting a 17.27% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.95 per share and a revenue of $3.63 billion, demonstrating changes of +15.38% and +14.73%, respectively, from the preceding year.
Any recent changes to analyst estimates for Pure Storage should also be noted by investors. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
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 shifted 0.63% upward. Pure Storage is currently sporting a Zacks Rank of #4 (Sell).
From a valuation perspective, Pure Storage is currently exchanging hands at a Forward P/E ratio of 36.17. This signifies a premium in comparison to the average Forward P/E of 20.88 for its industry.
It's also important to note that PSTG currently trades at a PEG ratio of 2.13. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Computer- Storage Devices industry had an average PEG ratio of 1.91 as trading concluded yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 23, putting it in the top 10% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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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