Pure Storage (PSTG) Stock Drops Despite Market Gains: Important Facts to Note
Pure Storage (PSTG) closed the most recent trading day at $45.38, moving -0.7% from the previous trading session. The stock fell short of the S&P 500, which registered a gain of 0.06% for the day. On the other hand, the Dow registered a gain of 0.28%, and the technology-centric Nasdaq decreased by 0.1%.
Prior to today's trading, shares of the data storage company had lost 0.65% over the past month. This has was narrower than the Computer and Technology sector's loss of 5.52% and the S&P 500's loss of 4.29% 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 forecasted to report an EPS of $0.25, showcasing a 21.88% downward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $771.15 million, indicating a 11.2% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $1.72 per share and revenue of $3.51 billion. These totals would mark changes of +1.78% and +10.86%, respectively, from 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. Hence, positive alterations in estimates signify analyst optimism regarding the company's business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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. The Zacks Consensus EPS estimate has moved 2.78% lower within the past month. Pure Storage is holding a Zacks Rank of #3 (Hold) right now.
Looking at its valuation, Pure Storage is holding a Forward P/E ratio of 26.55. This indicates a premium in contrast to its industry's Forward P/E of 12.24.
Investors should also note that PSTG has a PEG ratio of 1.58 right now. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. PSTG's industry had an average PEG ratio of 1.58 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.
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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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Pure Storage, Inc. (PSTG) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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