Pure Storage (PSTG) ended the recent trading session at $54.51, demonstrating a -8.42% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 1.6%. On the other hand, the Dow registered a loss of 1.23%, and the technology-centric Nasdaq decreased by 2.24%.
Coming into today, shares of the data storage company had gained 4.55% in the past month. In that same time, the Computer and Technology sector gained 4.45%, while the S&P 500 gained 2.25%.
The investment community will be closely monitoring the performance of Pure Storage in its forthcoming earnings report. The company is forecasted to report an EPS of $0.4, showcasing a 9.09% downward movement from the corresponding quarter of the prior year. Our most recent consensus estimate is calling for quarterly revenue of $845.76 million, up 10.74% from the year-ago period.
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 should also take note of any recent adjustments to analyst estimates for Pure Storage. Recent revisions tend to reflect the latest near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending 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, 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 last 30 days, the Zacks Consensus EPS estimate has moved 0.39% lower. At present, Pure Storage boasts a Zacks Rank of #3 (Hold).
In terms of valuation, Pure Storage is currently trading at a Forward P/E ratio of 32.74. This signifies a premium in comparison to the average Forward P/E of 13.47 for its industry.
We can additionally observe that PSTG currently boasts a PEG ratio of 1.76. 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. PSTG's industry had an average PEG ratio of 2.14 as of yesterday's close.
