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The most recent trading session ended with Pure Storage (PSTG) standing at $72.15, reflecting a -0.3% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily loss of 0.29%. Elsewhere, the Dow saw a downswing of 0.32%, while the tech-heavy Nasdaq depreciated by 0.5%.
The the stock of data storage company has risen by 10.66% in the past month, leading the Computer and Technology sector's gain of 1.8% and the S&P 500's gain of 2.52%.
The upcoming earnings release of Pure Storage will be of great interest to investors. On that day, Pure Storage is projected to report earnings of $0.43 per share, which would represent a year-over-year decline of 14%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $869.92 million, up 10.14% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $1.68 per share and revenue of $3.16 billion, which would represent changes of +18.31% and +11.57%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Pure Storage. These revisions typically reflect the latest short-term business trends, which can change frequently. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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 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. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.05% increase. At present, Pure Storage boasts a Zacks Rank of #3 (Hold).
From a valuation perspective, Pure Storage is currently exchanging hands at a Forward P/E ratio of 43.05. This valuation marks a premium compared to its industry's average Forward P/E of 13.67.
Also, we should mention that PSTG has a PEG ratio of 2.3. 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 the market closed yesterday, the Computer- Storage Devices industry was having an average PEG ratio of 2.3.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 161, putting it in the bottom 36% of all 250+ industries.