Pure Storage (PSTG) closed the latest trading day at $67.89, indicating a -1.48% change from the previous session's end. This move lagged the S&P 500's daily gain of 0.24%. Meanwhile, the Dow experienced a rise of 0.16%, and the technology-dominated Nasdaq saw an increase of 0.08%.
Coming into today, shares of the data storage company had lost 1.67% in the past month. In that same time, the Computer and Technology sector gained 1.76%, while the S&P 500 gained 2.37%.
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 February 26, 2025. It is anticipated that the company will report an EPS of $0.43, marking a 14% fall compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $869.92 million, showing a 10.14% escalation compared to the year-ago quarter.
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. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. 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 35.95. This signifies a premium in comparison to the average Forward P/E of 16.28 for its industry.
One should further note that PSTG currently holds a PEG ratio of 1.92. 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. As the market closed yesterday, the Computer- Storage Devices industry was having an average PEG ratio of 2.27.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 178, putting it in the bottom 30% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
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