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Pure Storage (PSTG) Laps the Stock Market: Here's Why
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In the latest market close, Pure Storage (PSTG - Free Report) reached $54.11, with a +1.23% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.51%. On the other hand, the Dow registered a gain of 0.85%, and the technology-centric Nasdaq increased by 0.27%.
Shares of the data storage company have appreciated by 0.58% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.73% and outperforming the S&P 500's loss of 0.25%.
The investment community will be paying close attention to the earnings performance of Pure Storage in its upcoming release. The company is slated to reveal its earnings on May 29, 2024. The company is predicted to post an EPS of $0.21, indicating a 162.5% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $681.37 million, up 15.62% from the year-ago period.
PSTG's full-year Zacks Consensus Estimates are calling for earnings of $1.55 per share and revenue of $3.13 billion. These results would represent year-over-year changes of +9.15% and +10.5%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Pure Storage. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 remained steady. At present, Pure Storage boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Pure Storage is presently trading at a Forward P/E ratio of 34.41. This signifies a premium in comparison to the average Forward P/E of 25.44 for its industry.
Meanwhile, PSTG's PEG ratio is currently 1.95. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer- Storage Devices industry had an average PEG ratio of 1.52 as trading concluded yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 11, positioning it in the top 5% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
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Pure Storage (PSTG) Laps the Stock Market: Here's Why
In the latest market close, Pure Storage (PSTG - Free Report) reached $54.11, with a +1.23% movement compared to the previous day. The stock's change was more than the S&P 500's daily gain of 0.51%. On the other hand, the Dow registered a gain of 0.85%, and the technology-centric Nasdaq increased by 0.27%.
Shares of the data storage company have appreciated by 0.58% over the course of the past month, underperforming the Computer and Technology sector's gain of 0.73% and outperforming the S&P 500's loss of 0.25%.
The investment community will be paying close attention to the earnings performance of Pure Storage in its upcoming release. The company is slated to reveal its earnings on May 29, 2024. The company is predicted to post an EPS of $0.21, indicating a 162.5% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $681.37 million, up 15.62% from the year-ago period.
PSTG's full-year Zacks Consensus Estimates are calling for earnings of $1.55 per share and revenue of $3.13 billion. These results would represent year-over-year changes of +9.15% and +10.5%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Pure Storage. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the company's business health and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational 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 remained steady. At present, Pure Storage boasts a Zacks Rank of #2 (Buy).
Looking at valuation, Pure Storage is presently trading at a Forward P/E ratio of 34.41. This signifies a premium in comparison to the average Forward P/E of 25.44 for its industry.
Meanwhile, PSTG's PEG ratio is currently 1.95. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Computer- Storage Devices industry had an average PEG ratio of 1.52 as trading concluded yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 11, positioning it in the top 5% of all 250+ industries.
The Zacks Industry Rank is ordered 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.