The latest trading session saw Pure Storage (PSTG) ending at $53.84, denoting a +1.85% adjustment from its last day’s close. The stock outpaced the S&P 500’s daily gain of 1.04%. Meanwhile, the Dow experienced a rise of 0.76%, and the technology-dominated Nasdaq saw an increase of 1.03%.
The the stock of data storage company has fallen by 18.89% in the past month, lagging the Computer and Technology sector’s loss of 13.91% and the S&P 500’s loss of 6.74%.
Investors will be eagerly watching for the performance of Pure Storage in its upcoming earnings disclosure. The company’s earnings per share (EPS) are projected to be $0.38, reflecting a 11.76% increase from the same quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $756.73 million, showing a 9.88% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.64 per share and revenue of $3.13 billion, which would represent changes of +15.49% and +10.63%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Pure Storage. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
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. Over the past month, the Zacks Consensus EPS estimate has remained steady. Pure Storage presently features a Zacks Rank of #2 (Buy).
In terms of valuation, Pure Storage is currently trading at a Forward P/E ratio of 32.25. This denotes a premium relative to the industry’s average Forward P/E of 16.86.
One should further note that PSTG currently holds a PEG ratio of 1.54. 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 1.3 at yesterday’s closing price.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 15, finds itself in the top 6% echelons 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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