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Pure Storage (PSTG) Stock Drops Despite Market Gains: Important Facts to Note
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The most recent trading session ended with Pure Storage (PSTG - Free Report) standing at $65.20, reflecting a -0.17% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.63%.
The data storage company's stock has dropped by 4.38% in the past month, falling short of the Computer and Technology sector's gain of 5.73% and the S&P 500's gain of 4.28%.
The investment community will be closely monitoring the performance of Pure Storage in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.38, reflecting a 11.76% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $756.73 million, reflecting a 9.88% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.64 per share and a revenue of $3.13 billion, representing changes of +15.49% and +10.63%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications 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 company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Pure Storage is currently a Zacks Rank #3 (Hold).
In the context of valuation, Pure Storage is at present trading with a Forward P/E ratio of 39.85. Its industry sports an average Forward P/E of 19.18, so one might conclude that Pure Storage is trading at a premium comparatively.
It is also worth noting that PSTG currently has a PEG ratio of 1.9. 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. The average PEG ratio for the Computer- Storage Devices industry stood at 1.58 at the close of the market yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 176, finds itself in the bottom 31% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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Pure Storage (PSTG) Stock Drops Despite Market Gains: Important Facts to Note
The most recent trading session ended with Pure Storage (PSTG - Free Report) standing at $65.20, reflecting a -0.17% shift from the previouse trading day's closing. The stock fell short of the S&P 500, which registered a gain of 0.55% for the day. At the same time, the Dow added 0.62%, and the tech-heavy Nasdaq gained 0.63%.
The data storage company's stock has dropped by 4.38% in the past month, falling short of the Computer and Technology sector's gain of 5.73% and the S&P 500's gain of 4.28%.
The investment community will be closely monitoring the performance of Pure Storage in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.38, reflecting a 11.76% increase from the same quarter last year. At the same time, our most recent consensus estimate is projecting a revenue of $756.73 million, reflecting a 9.88% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.64 per share and a revenue of $3.13 billion, representing changes of +15.49% and +10.63%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications 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 company's business performance and profit potential.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. Pure Storage is currently a Zacks Rank #3 (Hold).
In the context of valuation, Pure Storage is at present trading with a Forward P/E ratio of 39.85. Its industry sports an average Forward P/E of 19.18, so one might conclude that Pure Storage is trading at a premium comparatively.
It is also worth noting that PSTG currently has a PEG ratio of 1.9. 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. The average PEG ratio for the Computer- Storage Devices industry stood at 1.58 at the close of the market yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 176, finds itself in the bottom 31% echelons 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.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.