Pure Storage (PSTG) ended the recent trading session at $74.12, demonstrating a +1.8% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily gain of 0.41%. On the other hand, the Dow registered a loss of 0.83%, and the technology-centric Nasdaq increased by 0.91%.
Prior to today's trading, shares of the data storage company had gained 6.4% outpaced the Computer and Technology sector's gain of 0.49% and the S&P 500's gain of 0.38%.
The upcoming earnings release of Pure Storage will be of great interest to investors. The company is predicted to post an EPS of $0.65, indicating a 44.44% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $1.03 billion, indicating a 17.27% growth compared to the corresponding quarter of the prior 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.
It is also important to note the recent changes to analyst estimates for Pure Storage. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Pure Storage is currently sporting a Zacks Rank of #4 (Sell).
In terms of valuation, Pure Storage is currently trading at a Forward P/E ratio of 37.32. This valuation marks a premium compared to its industry average Forward P/E of 21.56.
It is also worth noting that PSTG currently has a PEG ratio of 2.2. 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. The Computer- Storage Devices industry had an average PEG ratio of 1.76 as trading concluded yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 22, which puts it in the top 9% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Pure Storage, Inc. (PSTG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
