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Pure Storage (PSTG) Dips More Than Broader Markets: What You Should Know

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Pure Storage (PSTG - Free Report) closed the most recent trading day at $30.45, moving -0.98% from the previous trading session. This move lagged the S&P 500's daily loss of 0.39%. Meanwhile, the Dow lost 0.14%, and the Nasdaq, a tech-heavy index, lost 0.1%.

Coming into today, shares of the data storage company had gained 6.73% in the past month. In that same time, the Computer and Technology sector gained 5.83%, while the S&P 500 gained 6.77%.

Wall Street will be looking for positivity from Pure Storage as it approaches its next earnings report date. This is expected to be November 30, 2022. In that report, analysts expect Pure Storage to post earnings of $0.26 per share. This would mark year-over-year growth of 18.18%. Our most recent consensus estimate is calling for quarterly revenue of $671.84 million, up 19.39% from the year-ago period.

PSTG's full-year Zacks Consensus Estimates are calling for earnings of $1.18 per share and revenue of $2.75 billion. These results would represent year-over-year changes of +63.89% and +26.17%, respectively.

Investors should also note any recent changes to analyst estimates for Pure Storage. These revisions typically reflect the latest short-term business trends, which can change frequently. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Pure Storage is currently sporting a Zacks Rank of #2 (Buy).

Digging into valuation, Pure Storage currently has a Forward P/E ratio of 26.02. Its industry sports an average Forward P/E of 16.61, so we one might conclude that Pure Storage is trading at a premium comparatively.

Also, we should mention that PSTG has a PEG ratio of 0.73. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. PSTG's industry had an average PEG ratio of 0.73 as of yesterday's close.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 38, which puts it in the top 16% of all 250+ industries.

The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

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