In the latest close session, Pure Storage (PSTG) was down 4.23% at $69.54. This change lagged the S&P 500's 0.43% loss on the day. On the other hand, the Dow registered a loss of 0.37%, and the technology-centric Nasdaq decreased by 0.94%.
The data storage company's shares have seen an increase of 8.36% over the last month, surpassing the Computer and Technology sector's gain of 1.51% and the S&P 500's gain of 0.89%.
The investment community will be paying close attention to the earnings performance of Pure Storage in its upcoming release. The company is expected to report EPS of $0.65, up 44.44% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $1.03 billion, showing a 17.27% escalation compared to the year-ago quarter.
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 note any recent changes to analyst estimates for Pure Storage. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, 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 past month, there's been no change in the Zacks Consensus EPS estimate. At present, Pure Storage boasts a Zacks Rank of #4 (Sell).
In terms of valuation, Pure Storage is presently being traded at a Forward P/E ratio of 37.22. For comparison, its industry has an average Forward P/E of 22.65, 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 2.19. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Computer- Storage Devices industry was having an average PEG ratio of 1.75.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 24, finds itself in the top 10% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming 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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