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Pure Storage (PSTG) Rises Higher Than Market: Key Facts

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In the latest trading session, Pure Storage (PSTG - Free Report) closed at $69.01, marking a +2.98% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.19%. Meanwhile, the Dow experienced a rise of 0.66%, and the technology-dominated Nasdaq saw a decrease of 0.03%.

The data storage company's shares have seen a decrease of 7.19% over the last month, not keeping up with the Computer and Technology sector's gain of 0.02% and the S&P 500's gain of 0.54%.

The investment community will be paying close attention to the earnings performance of Pure Storage in its upcoming release. The company is expected to report EPS of $0.65, up 44.44% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $1.03 billion, up 17.27% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.95 per share and a revenue of $3.63 billion, indicating changes of +15.38% and +14.73%, respectively, from the former year.

Investors should also pay attention to any latest changes in analyst estimates for Pure Storage. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 9.81% downward. Pure Storage is holding a Zacks Rank of #3 (Hold) right now.

Looking at its valuation, Pure Storage is holding a Forward P/E ratio of 34.35. This valuation marks a premium compared to its industry average Forward P/E of 16.26.

It's also important to note that PSTG currently trades at a PEG ratio of 2.03. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. PSTG's industry had an average PEG ratio of 1.9 as of yesterday's close.

The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 18, positioning it in the top 8% of all 250+ industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. 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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