The latest trading session saw Pure Storage (PSTG) ending at $68.38, denoting a +1.09% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a gain of 0.53% for the day. Elsewhere, the Dow saw an upswing of 0.38%, while the tech-heavy Nasdaq appreciated by 0.25%.
Prior to today's trading, shares of the data storage company had gained 10.11% over the past month. This has outpaced the Computer and Technology sector's loss of 0.75% and the S&P 500's gain of 1.24% in that time.
Market participants will be closely following the financial results of Pure Storage in its upcoming release. The company's upcoming EPS is projected at $0.43, signifying a 14% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $869.92 million, up 10.14% from the year-ago period.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.68 per share and a revenue of $3.16 billion, indicating changes of +18.31% and +11.57%, respectively, from the former year.
It is also important to note the recent changes to analyst estimates for Pure Storage. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.05% higher. Right now, Pure Storage possesses a Zacks Rank of #3 (Hold).
In terms of valuation, Pure Storage is currently trading at a Forward P/E ratio of 40.24. This denotes a premium relative to the industry's average Forward P/E of 13.75.
We can additionally observe that PSTG currently boasts a PEG ratio of 2.15. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Computer- Storage Devices industry stood at 2.15 at the close of the market yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 161, finds itself in the bottom 36% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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