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Pure Storage (PSTG) Exceeds Market Returns: Some Facts to Consider
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Pure Storage (PSTG - Free Report) closed the latest trading day at $58.27, indicating a +1.48% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 1.11%. At the same time, the Dow added 1.64%, and the tech-heavy Nasdaq gained 1.03%.
Heading into today, shares of the data storage company had lost 11.91% over the past month, lagging the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 1.16% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Pure Storage in its upcoming earnings disclosure. On that day, Pure Storage is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 11.76%. Alongside, our most recent consensus estimate is anticipating revenue of $756.73 million, indicating a 9.88% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.64 per share and a revenue of $3.13 billion, demonstrating changes of +15.49% and +10.63%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Pure Storage. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Pure Storage presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Pure Storage is currently exchanging hands at a Forward P/E ratio of 35.04. This expresses a premium compared to the average Forward P/E of 18.32 of its industry.
One should further note that PSTG currently holds a PEG ratio of 1.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer- Storage Devices was holding an average PEG ratio of 1.41 at yesterday's closing price.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 33, positioning it in the top 14% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Pure Storage (PSTG) Exceeds Market Returns: Some Facts to Consider
Pure Storage (PSTG - Free Report) closed the latest trading day at $58.27, indicating a +1.48% change from the previous session's end. The stock outperformed the S&P 500, which registered a daily gain of 1.11%. At the same time, the Dow added 1.64%, and the tech-heavy Nasdaq gained 1.03%.
Heading into today, shares of the data storage company had lost 11.91% over the past month, lagging the Computer and Technology sector's loss of 5.32% and the S&P 500's loss of 1.16% in that time.
Analysts and investors alike will be keeping a close eye on the performance of Pure Storage in its upcoming earnings disclosure. On that day, Pure Storage is projected to report earnings of $0.38 per share, which would represent year-over-year growth of 11.76%. Alongside, our most recent consensus estimate is anticipating revenue of $756.73 million, indicating a 9.88% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $1.64 per share and a revenue of $3.13 billion, demonstrating changes of +15.49% and +10.63%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Pure Storage. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Pure Storage presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Pure Storage is currently exchanging hands at a Forward P/E ratio of 35.04. This expresses a premium compared to the average Forward P/E of 18.32 of its industry.
One should further note that PSTG currently holds a PEG ratio of 1.67. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer- Storage Devices was holding an average PEG ratio of 1.41 at yesterday's closing price.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 33, positioning it in the top 14% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.