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Pure Storage (PSTG) Declines More Than Market: Some Information for Investors

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Pure Storage (PSTG - Free Report) 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.

The Computer- Storage Devices industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 42, placing it within the top 18% of over 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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