In the latest trading session, Pure Storage (PSTG) closed at $71.74, marking a +2.4% move from the previous day. The stock's change was more than the S&P 500's daily gain of 1.16%. At the same time, the Dow added 1.21%, and the tech-heavy Nasdaq gained 1.18%.
Prior to today's trading, shares of the data storage company had gained 4.15% outpaced the Computer and Technology sector's loss of 1.07% and the S&P 500's loss of 0.42%.
The investment community will be paying close attention to the earnings performance of Pure Storage in its upcoming release. The company is forecasted to report an EPS of $0.65, showcasing a 44.44% upward movement from the corresponding quarter of the prior 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 are projecting earnings of $1.95 per share and revenue of $3.63 billion, which would represent changes of +15.38% and +14.73%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Pure Storage. These recent revisions tend to reflect the evolving nature of short-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.63% higher within the past month. As of now, Pure Storage holds a Zacks Rank of #4 (Sell).
From a valuation perspective, Pure Storage is currently exchanging hands at a Forward P/E ratio of 35.91. This expresses a premium compared to the average Forward P/E of 22.02 of its industry.
We can also see that PSTG currently has a PEG ratio of 2.12. 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 currently had an average PEG ratio of 1.67 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 21, positioning it in the top 9% of all 250+ industries.
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.
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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