In the latest trading session, Pure Storage (PSTG) closed at $73.64, marking a -1.05% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.33% for the day. Meanwhile, the Dow experienced a rise of 0.1%, and the technology-dominated Nasdaq saw a decrease of 0.59%.
Shares of the data storage company witnessed a gain of 2.73% over the previous month, beating the performance of the Computer and Technology sector with its loss of 1.09%, and the S&P 500's loss of 0%.
Analysts and investors alike will be keeping a close eye on the performance of Pure Storage in its upcoming earnings disclosure. The company's earnings report is set to go public on February 25, 2026. 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. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $1.03 billion, up 17.27% from the year-ago period.
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.
It is also important to note the recent changes to 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 business performance and profit potential.
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 ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Right now, Pure Storage possesses a Zacks Rank of #2 (Buy).
With respect to valuation, Pure Storage is currently being traded at a Forward P/E ratio of 31.83. This signifies a premium in comparison to the average Forward P/E of 18.27 for its industry.
We can also see that PSTG currently has a PEG ratio of 1.88. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer- Storage Devices was holding an average PEG ratio of 1.83 at yesterday's closing price.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 18, which puts it in the top 8% 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.
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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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