In the latest trading session, Pure Storage (PSTG) closed at $69.71, marking a -0.36% move from the previous day. This change lagged the S&P 500's 0.36% gain on the day. At the same time, the Dow lost 0.28%, and the tech-heavy Nasdaq gained 0.51%.
Shares of the data storage company witnessed a gain of 8.87% over the previous month, beating the performance of the Computer and Technology sector with its of 0% and the S&P 500's gain of 2.11%.
The investment community will be closely monitoring the performance of Pure Storage in its forthcoming earnings report. The company is scheduled to release its earnings on February 26, 2025. The company's earnings per share (EPS) are projected to be $0.43, reflecting a 14% decrease from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $869.92 million, indicating a 10.14% growth compared to the corresponding quarter of the prior 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. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming 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, 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 moved 2.42% 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 36.49. For comparison, its industry has an average Forward P/E of 13.44, which means Pure Storage is trading at a premium to the group.
It is also worth noting that PSTG currently has a PEG ratio of 1.95. 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 1.95 at yesterday's closing price.
The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 36, placing it within the top 15% of over 250 industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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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