In the latest trading session, Pure Storage (PSTG) closed at $56.93, marking a +1.66% move from the previous day. This move outpaced the S&P 500's daily gain of 0.83%. At the same time, the Dow added 0.77%, and the tech-heavy Nasdaq gained 1.02%.
The stock of data storage company has risen by 2.34% in the past month, lagging the Computer and Technology sector's gain of 8.25% and the S&P 500's gain of 4.99%.
The investment community will be closely monitoring the performance of Pure Storage in its forthcoming earnings report. The company is forecasted to report an EPS of $0.4, showcasing a 9.09% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $845.76 million, indicating a 10.74% upward movement from the same quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.82 per share and a revenue of $3.52 billion, representing changes of +7.69% and +11.01%, respectively, from the prior year.
Any recent changes to analyst estimates for Pure Storage should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. 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, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.59% higher. Pure Storage presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Pure Storage is holding a Forward P/E ratio of 30.79. Its industry sports an average Forward P/E of 13.93, so one might conclude that Pure Storage is trading at a premium comparatively.
One should further note that PSTG currently holds a PEG ratio of 1.65. 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. As of the close of trade yesterday, the Computer- Storage Devices industry held an average PEG ratio of 1.99.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 165, this industry ranks in the bottom 34% of all industries, numbering over 250.
The Zacks Industry Rank gauges the strength of our 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next 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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