Pure Storage (PSTG) closed the latest trading day at $40.36, indicating a +0.37% change from the previous session's end. This move lagged the S&P 500's daily gain of 2.51%. Meanwhile, the Dow gained 2.66%, and the Nasdaq, a tech-heavy index, added 2.71%.
Shares of the data storage company have depreciated by 23.96% over the course of the past month, underperforming the Computer and Technology sector's loss of 12.18% and the S&P 500's loss of 8.86%.
Analysts and investors alike will be keeping a close eye on the performance of Pure Storage in its upcoming earnings disclosure. The company's upcoming EPS is projected at $0.25, signifying a 21.88% drop compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $771.15 million, reflecting a 11.2% rise from the equivalent quarter last year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.72 per share and a revenue of $3.51 billion, indicating changes of +1.78% and +10.86%, respectively, from the former year.
Investors should also pay attention to any latest changes in analyst estimates for Pure Storage. These revisions typically reflect the latest short-term business trends, which can change frequently. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Over the past month, the Zacks Consensus EPS estimate has moved 2.78% lower. Pure Storage presently features a Zacks Rank of #3 (Hold).
In the context of valuation, Pure Storage is at present trading with a Forward P/E ratio of 23.36. This expresses a premium compared to the average Forward P/E of 11.3 of its industry.
Also, we should mention that PSTG has a PEG ratio of 1.39. 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. PSTG's industry had an average PEG ratio of 1.39 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 33, positioning it in the top 14% 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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