In the latest close session, Pure Storage (PSTG) was up +1.98% at $58.21. This move outpaced the S&P 500's daily gain of 0.61%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 0.95%.
Shares of the data storage company witnessed a gain of 3.56% over the previous month, trailing the performance of the Computer and Technology sector with its gain of 5.6%, and the S&P 500's gain of 3.85%.
The investment community will be paying close attention to the earnings performance of Pure Storage in its upcoming release. The company's upcoming EPS is projected at $0.4, signifying a 9.09% drop compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $845.83 million, indicating a 10.74% growth compared to the corresponding quarter of the prior 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.
It's also important for investors to be aware of any recent modifications to analyst estimates for Pure Storage. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
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, 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 2.51% higher. Currently, Pure Storage is carrying a Zacks Rank of #3 (Hold).
Digging into valuation, Pure Storage currently has a Forward P/E ratio of 31.36. This signifies a premium in comparison to the average Forward P/E of 13.81 for its industry.
We can additionally observe that PSTG currently boasts a PEG ratio of 1.68. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 1.98 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 39, putting it in the top 16% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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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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