Back to top

Image: Bigstock

Pure Storage (PSTG) Advances While Market Declines: Some Information for Investors

Read MoreHide Full Article

In the latest close session, Pure Storage (PSTG - Free Report) was up +1.52% at $58.12. The stock outperformed the S&P 500, which registered a daily loss of 0.01%. Meanwhile, the Dow lost 0.32%, and the Nasdaq, a tech-heavy index, added 0.05%.

Heading into today, shares of the data storage company had gained 8.28% over the past month, outpacing the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 5.37%.

The upcoming earnings release of Pure Storage will be of great interest to investors. On that day, Pure Storage is projected to report earnings of $0.4 per share, which would represent a year-over-year decline of 9.09%. Meanwhile, the latest consensus estimate predicts the revenue to be $845.76 million, indicating a 10.74% increase compared to the same quarter of the previous year.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.82 per share and a revenue of $3.52 billion, signifying shifts of +7.69% and +11.01%, respectively, from the last year.

Investors might also notice recent changes to analyst estimates for Pure Storage. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

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 last 30 days, the Zacks Consensus EPS estimate has moved 0.59% higher. Pure Storage is currently sporting a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Pure Storage has a Forward P/E ratio of 31.47 right now. This indicates a premium in contrast to its industry's Forward P/E of 13.88.

One should further note that PSTG currently holds a PEG ratio of 1.69. 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 was holding an average PEG ratio of 2 at yesterday's closing price.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 11, putting it in the top 5% of all 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.

To follow PSTG in the coming trading sessions, be sure to utilize Zacks.com.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Pure Storage, Inc. (PSTG) - free report >>

Published in