The most recent trading session ended with Pure Storage (PSTG) standing at $45.36, reflecting a -0.48% shift from the previouse trading day's closing. This change lagged the S&P 500's 0.15% gain on the day. Meanwhile, the Dow experienced a rise of 0.35%, and the technology-dominated Nasdaq saw a decrease of 0.09%.
Prior to today's trading, shares of the data storage company had gained 0.42% over the past month. This has lagged the Computer and Technology sector's gain of 1.15% and outpaced the S&P 500's loss of 0.21% in that time.
Investors will be eagerly watching for the performance of Pure Storage in its upcoming earnings disclosure. In that report, analysts expect Pure Storage to post earnings of $0.25 per share. This would mark a year-over-year decline of 21.88%. Meanwhile, our latest consensus estimate is calling for revenue of $771.15 million, up 11.2% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $1.72 per share and a revenue of $3.51 billion, demonstrating changes of +1.78% and +10.86%, respectively, from the preceding year.
Any recent changes to analyst estimates for Pure Storage should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 has moved 2.78% lower within the past month. Pure Storage presently features a Zacks Rank of #3 (Hold).
With respect to valuation, Pure Storage is currently being traded at a Forward P/E ratio of 26.49. This signifies a premium in comparison to the average Forward P/E of 12.16 for its industry.
Investors should also note that PSTG has a PEG ratio of 1.58 right now. 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. As of the close of trade yesterday, the Computer- Storage Devices industry held an average PEG ratio of 1.58.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 159, this industry ranks in the bottom 36% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming 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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