In This Article:
In the latest trading session, Pure Storage (PSTG) closed at $67.79, marking a -0.86% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.51% for the day. Elsewhere, the Dow lost 0.75%, while the tech-heavy Nasdaq lost 0.28%.
Heading into today, shares of the data storage company had gained 9.43% over the past month, outpacing the Computer and Technology sector's gain of 0.79% and the S&P 500's gain of 2.87% in that time.
The upcoming earnings release of Pure Storage will be of great interest to investors. The company's upcoming EPS is projected at $0.43, signifying a 14% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $869.92 million, indicating a 10.14% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.68 per share and revenue of $3.16 billion. These totals would mark changes of +18.31% and +11.57%, respectively, from last year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Pure Storage. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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, there's been a 0.05% rise in the Zacks Consensus EPS estimate. Pure Storage is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note Pure Storage's current valuation metrics, including its Forward P/E ratio of 40.68. This denotes a premium relative to the industry's average Forward P/E of 13.77.
Also, we should mention that PSTG has a PEG ratio of 2.17. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The average PEG ratio for the Computer- Storage Devices industry stood at 2.17 at the close of the market yesterday.