Pure Storage (PSTG) closed at $55.48 in the latest trading session, marking a -1.7% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.41%. Elsewhere, the Dow gained 0.65%, while the tech-heavy Nasdaq lost 0.18%.

Heading into today, shares of the data storage company had gained 36.79% over the past month, outpacing the Computer and Technology sector's gain of 15% and the S&P 500's gain of 9% in that time.

The upcoming earnings release of Pure Storage will be of great interest to investors. The company's earnings report is expected on May 28, 2025. The company's earnings per share (EPS) are projected to be $0.25, reflecting a 21.88% decrease from the same quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $771.15 million, indicating a 11.2% upward movement from the same quarter last year.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $1.72 per share and revenue of $3.51 billion, indicating changes of +1.78% and +10.86%, respectively, compared to the previous year.

Investors should also note any recent changes to analyst estimates for Pure Storage. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the company's business operations and its ability to generate profits.

Based on our research, we believe these estimate revisions are directly related to near-team stock moves. 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain 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).

Looking at valuation, Pure Storage is presently trading at a Forward P/E ratio of 32.79. This represents a premium compared to its industry's average Forward P/E of 12.87.

It's also important to note that PSTG currently trades at a PEG ratio of 1.95. 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 average PEG ratio for the Computer- Storage Devices industry stood at 1.95 at the close of the market yesterday.

Story Continues

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 229, which puts it in the bottom 8% 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.

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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Pure Storage, Inc. (PSTG):Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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