Pure Storage (PSTG) Shows Strong Market Performance
Pure Storage (PSTG) closed at $50.95, reflecting a gain of +1.8% from the previous day’s end. This performance outpaced the S&P 500’s increase of 0.41%. Additionally, the Dow Jones also rose by 0.69%, while the Nasdaq Composite saw a boost of 0.8%.
Over the past month, Pure Storage’s shares have appreciated by 0.58%, in contrast to the Computer and Technology sector’s slight decrease of 0.01% and an S&P 500 loss of 0.97%.
Upcoming Earnings Report: Key Expectations
Investors and analysts continue to anticipate upcoming earnings from Pure Storage. Expectations are set at earnings of $0.43 per share, indicating a year-over-year decline of 14%. Analysts project quarterly revenue of $814.63 million, a 6.79% increase compared to the same period last year.
Looking at the full fiscal year, Zacks Consensus Estimates indicate earnings of $1.66 per share and total revenue of $3.13 billion, representing increases of +16.9% and +10.45% from the previous year.
Analyst Estimates: A Signal of Business Trends
Monitoring recent changes in analyst estimates for Pure Storage is crucial, as these adjustments often reflect shifting business trends. Positive estimate revisions typically signal favorable outlooks for the company’s performance.
Our research indicates a strong correlation between estimate revisions and stock movements. We utilize the Zacks Rank, a proprietary model designed to merge these estimate changes and offer a comprehensive rating system.
The Zacks Rank ranges from #1 (Strong Buy) to #5 (Strong Sell) and has a notable track record. Stocks ranked #1 have delivered an average annual return of +25% since 1988. Currently, Pure Storage holds a Zacks Rank of #4 (Sell), unchanged over the past 30 days.
Valuation Overview: Trading at a Premium
As of now, Pure Storage operates with a Forward P/E ratio of 30.24, significantly higher than its industry average of 14.4. This indicates that Pure Storage is trading at a premium compared to its peers.
In addition, the company has a PEG ratio of 2.03, reflecting its expected earnings growth. This is aligned with the Computer-Storage Devices industry’s PEG ratio, which stands at the same figure.
The broader Computer-Storage Devices industry belongs to the larger Computer and Technology sector, currently ranked 39 in the Zacks Industry Rank, placing it in the top 16% of over 250 industries.
The Zacks Industry Rank evaluates the strength of various industry groups by averaging the Zacks Rank of their individual stocks. Research shows that industries in the top half outperform those in the bottom half by a 2-to-1 margin.
Keep an eye on these financial metrics and more by visiting Zacks.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
