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Yahoo
4 days ago
- Business
- Yahoo
Investors Heavily Search Pure Storage, Inc. (PSTG): Here is What You Need to Know
Pure Storage (PSTG) has been one of the most searched-for stocks on lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Over the past month, shares of this data storage company have returned -4.6%, compared to the Zacks S&P 500 composite's +0.6% change. During this period, the Zacks Computer- Storage Devices industry, which Pure Storage falls in, has gained 1.6%. The key question now is: What could be the stock's future direction? Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For the current quarter, Pure Storage is expected to post earnings of $0.40 per share, indicating a change of -9.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -2.4% over the last 30 days. For the current fiscal year, the consensus earnings estimate of $1.81 points to a change of +7.1% from the prior year. Over the last 30 days, this estimate has changed +11.7%. For the next fiscal year, the consensus earnings estimate of $2.37 indicates a change of +30.8% from what Pure Storage is expected to report a year ago. Over the past month, the estimate has changed +4.9%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Pure Storage is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: While earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth. For Pure Storage, the consensus sales estimate for the current quarter of $845.79 million indicates a year-over-year change of +10.7%. For the current and next fiscal years, $3.52 billion and $4.04 billion estimates indicate +11% and +14.8% changes, respectively. Pure Storage reported revenues of $778.48 million in the last reported quarter, representing a year-over-year change of +12.3%. EPS of $0.29 for the same period compares with $0.32 a year ago. Compared to the Zacks Consensus Estimate of $771.15 million, the reported revenues represent a surprise of +0.95%. The EPS surprise was +16%. The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period. Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Pure Storage is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Pure Storage. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pure Storage, Inc. (PSTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Here's Why Pure Storage (PSTG) is a Strong Growth Stock
It doesn't matter your age or experience: taking full advantage of the stock market and investing with confidence are common goals for all investors. Many investors also have a go-to methodology that helps guide their buy and sell decisions. One way to find winning stocks based on your preferred way of investing is to use the Zacks Style Scores, which are indicators that rate stocks based on three widely-followed investing types: value, growth, and momentum. Different than value or momentum investors, growth-oriented investors are concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, they'll want to focus on the Growth Style Score, which analyzes characteristics like projected and historical earnings, sales, and cash flow to find stocks that will see sustainable growth over time. Founded in 2009 and headquartered in Mountain View, CA, Pure Storage Inc. (PSTG) provides software-defined all-flash solutions that are uniquely fast and cloud-capable for customers. PSTG boasts a Growth Style Score of A and VGM Score of B, and holds a Zacks Rank #3 (Hold) rating. Its bottom-line is projected to rise 7.1% year-over-year for 2026, while Wall Street anticipates its top line to improve by 11%. Six analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.09 to $1.81 per share for 2026. PSTG boasts an average earnings surprise of 13.8%. Looking at cash flow, Pure Storage is expected to report cash flow growth of 10% this year; PSTG has generated cash flow growth of 53.6% over the past three to five years. PSTG should be on investors' short lists because of its impressive growth fundamentals, a good Zacks Rank, and strong Growth and VGM Style Scores. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pure Storage, Inc. (PSTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
09-06-2025
- Business
- Yahoo
Pure Storage (PSTG): Buy, Sell, or Hold Post Q1 Earnings?
Over the past six months, Pure Storage's shares (currently trading at $55.49) have posted a disappointing 13% loss while the S&P 500 was flat. This may have investors wondering how to approach the situation. Following the pullback, is this a buying opportunity for PSTG? Find out in our full research report, it's free. Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE:PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments. In addition to reported revenue, ARR (annual recurring revenue) is a useful data point for analyzing Hardware & Infrastructure companies. This metric shows how much Pure Storage expects to collect from its existing customer base in the next 12 months, giving visibility into its future revenue streams. Pure Storage's ARR punched in at $1.71 billion in the latest quarter, and over the last two years, its year-on-year growth averaged 23.5%. This performance was fantastic and shows that customers are willing to take multi-year bets on the company's product offerings. Its growth also makes Pure Storage a more predictable business, a tailwind for its valuation as investors typically prefer businesses with recurring revenue. Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. Pure Storage's EPS grew at an astounding 36.9% compounded annual growth rate over the last five years, higher than its 14.1% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. Pure Storage has shown terrific cash profitability, enabling it to reinvest, return capital to investors, and stay ahead of the competition while maintaining an ample cushion. The company's free cash flow margin was among the best in the business services sector, averaging 17% over the last five years. These are just a few reasons why we think Pure Storage is an elite business services company. After the recent drawdown, the stock trades at 30.5× forward P/E (or $55.49 per share). Is now the right time to buy? See for yourself in our in-depth research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
06-06-2025
- Business
- Yahoo
3 High-Flying Stocks to Target This Week
"You get what you pay for" often applies to expensive stocks with best-in-class business models and execution. While their quality can sometimes justify the premium, they typically experience elevated volatility during market downturns when expectations change. Finding the right balance between price and quality can challenge even the most skilled investors. Luckily for you, we started StockStory to help you identify the real opportunities. Keeping that in mind, here are three high-flying stocks with strong fundamentals. Forward P/E Ratio: 39.7x Founded in 1997 by its longtime CEO Michael Hsing, Monolithic Power Systems (NASDAQ:MPWR) is an analog and mixed signal chipmaker that specializes in power management chips meant to minimize total energy consumption. Why Is MPWR a Top Pick? Annual revenue growth of 13.1% over the last two years was superb and indicates its market share increased during this cycle Strong free cash flow margin of 29.2% enables it to reinvest or return capital consistently, and its recently improved profitability means it has even more resources to invest or distribute Stellar returns on capital showcase management's ability to surface highly profitable business ventures Monolithic Power Systems is trading at $682.20 per share, or 39.7x forward P/E. Is now the right time to buy? See for yourself in our full research report, it's free. Forward P/E Ratio: 36x Supplying parts for nearly all aircraft currently in service, TransDigm (NYSE:TDG) develops and manufactures components and systems for military and commercial aviation. Why Should You Buy TDG? Core business is healthy and doesn't need acquisitions to boost sales as its organic revenue growth averaged 14.9% over the past two years Performance over the past two years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 30.8% outpaced its revenue gains Robust free cash flow margin of 19.7% gives it many options for capital deployment, and its improved cash conversion implies it's becoming a less capital-intensive business TransDigm's stock price of $1,444 implies a valuation ratio of 36x forward P/E. Is now the time to initiate a position? Find out in our full research report, it's free. Forward P/E Ratio: 30.1x Founded in 2009 as a pioneer in enterprise all-flash storage technology, Pure Storage (NYSE:PSTG) provides all-flash data storage hardware and software that helps organizations manage their data more efficiently across on-premises and cloud environments. Why Do We Love PSTG? ARR trends over the past two years show it's maintaining a steady flow of long-term contracts that contribute positively to its revenue predictability Incremental sales significantly boosted profitability as its annual earnings per share growth of 36.9% over the last five years outstripped its revenue performance PSTG is a free cash flow machine with the flexibility to invest in growth initiatives or return capital to shareholders, and its rising cash conversion increases its margin of safety At $54.01 per share, Pure Storage trades at 30.1x forward P/E. Is now a good time to buy? See for yourself in our in-depth research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
04-06-2025
- Business
- Business Insider
Analysts Offer Insights on Technology Companies: Pure Storage (PSTG) and Xero Limited (OtherXROLF)
There's a lot to be optimistic about in the Technology sector as 2 analysts just weighed in on Pure Storage (PSTG – Research Report) and Xero Limited (XROLF – Research Report) with bullish sentiments. Confident Investing Starts Here: Pure Storage (PSTG) In a report released today, Jason Ader from William Blair reiterated a Buy rating on Pure Storage. The company's shares closed last Tuesday at $54.87. According to Ader is a 4-star analyst with an average return of 4.6% and a 55.3% success rate. Ader covers the Technology sector, focusing on stocks such as DigitalOcean Holdings, CommVault Systems, and Varonis Systems. Pure Storage has an analyst consensus of Strong Buy, with a price target consensus of $72.24, a 34.1% upside from current levels. In a report issued on May 23, Evercore ISI also maintained a Buy rating on the stock with a $70.00 price target. Xero Limited (XROLF) Jarden analyst Tom Beadle maintained a Buy rating on Xero Limited today and set a price target of A$197.00. The company's shares closed last Tuesday at $116.01, close to its 52-week high of $118.88. According to Beadle is a 2-star analyst with an average return of 0.0% and a 56.1% success rate. Beadle covers the NA sector, focusing on stocks such as Telstra Corporation Limited, TPG Telecom Limited, and REA Group Ltd. Currently, the analyst consensus on Xero Limited is a Strong Buy with an average price target of $132.45, a 14.2% upside from current levels. In a report issued on May 19, Citi also maintained a Buy rating on the stock with a A$210.00 price target.
