The latest trading session saw Pure Storage (PSTG) ending at $64.73, denoting a +0.73% adjustment from its last day's close. The stock outperformed the S&P 500, which registered a daily loss of 1.54%. Meanwhile, the Dow lost 1.63%, and the Nasdaq, a tech-heavy index, lost 1.63%.
Shares of the data storage company witnessed a gain of 2.78% over the previous month, beating the performance of the Computer and Technology sector with its gain of 0.11% and the S&P 500's loss of 2.2%.
The upcoming earnings release of Pure Storage will be of great interest to investors. It is anticipated that the company will report an EPS of $0.43, marking a 14% fall compared to the same quarter of the previous year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $869.71 million, up 10.12% 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. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. As of now, Pure Storage holds a Zacks Rank of #3 (Hold).
In terms of valuation, Pure Storage is presently being traded at a Forward P/E ratio of 38.23. This denotes a premium relative to the industry's average Forward P/E of 13.22.
We can also see that PSTG currently has a PEG ratio of 2.04. 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 2.04.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 238, positioning it in the bottom 6% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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