Pure Storage (PSTG) ended the recent trading session at $54.60, demonstrating a +1.6% swing from the preceding day's closing price. The stock outperformed the S&P 500, which registered a daily gain of 0.57%. Meanwhile, the Dow experienced a rise of 0.28%, and the technology-dominated Nasdaq saw an increase of 0.63%.
Heading into today, shares of the data storage company had lost 0.61% over the past month, lagging the Computer and Technology sector's gain of 0.92% and the S&P 500's gain of 3.15% in that time.
The investment community will be paying close attention to the earnings performance of Pure Storage in its upcoming release. The company is slated to reveal its earnings on December 3, 2024. The company's earnings per share (EPS) are projected to be $0.43, reflecting a 14% decrease from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $814.77 million, up 6.81% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.66 per share and a revenue of $3.13 billion, signifying shifts of +16.9% and +10.51%, respectively, from the last year.
Investors might also notice recent changes to analyst estimates for Pure Storage. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.
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.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 1.35% lower. Right now, Pure Storage possesses a Zacks Rank of #3 (Hold).
With respect to valuation, Pure Storage is currently being traded at a Forward P/E ratio of 32.43. This signifies a premium in comparison to the average Forward P/E of 13.41 for its industry.
It is also worth noting that PSTG currently has a PEG ratio of 1.86. 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 Computer- Storage Devices was holding an average PEG ratio of 1.86 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 57, positioning it in the top 23% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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