Group 1 - Pure Storage (PSTG) closed at $55.53, reflecting a -2.95% change from the previous day, underperforming the S&P 500's loss of 0.24% [1] - Over the past month, shares of Pure Storage have increased by 2.54%, outperforming the Computer and Technology sector's gain of 2.07% and the S&P 500's gain of 1.95% [1] Group 2 - Pure Storage is set to release its earnings report on August 27, 2025, with an expected EPS of $0.4, indicating a 9.09% decline year-over-year, while revenue is projected to be $845.76 million, up 10.74% from the prior-year quarter [2] - For the full year, analysts expect earnings of $1.82 per share and revenue of $3.52 billion, representing changes of +7.69% and +11.01% respectively from last year [3] Group 3 - Recent modifications to analyst estimates for Pure Storage are crucial as they reflect changing near-term business trends, with positive revisions indicating analyst optimism [4] - Estimate revisions are correlated with near-term share price momentum, and investors can utilize the Zacks Rank for actionable insights [5] Group 4 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a strong track record, with 1 stocks averaging an annual return of +25% since 1988; currently, Pure Storage holds a Zacks Rank of 3 (Hold) [6] Group 5 - Pure Storage is currently traded at a Forward P/E ratio of 31.47, indicating a premium compared to its industry's Forward P/E of 14.11; the company's PEG ratio is 1.69, matching the industry average [7] Group 6 - The Computer-Storage Devices industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 27, placing it in the top 11% of over 250 industries, with top-rated industries outperforming lower-rated ones by a factor of 2 to 1 [8]

Core Viewpoint - The comparison between Western Digital (WDC) and Pure Storage (PSTG) indicates that WDC is more attractive to value investors due to its stronger earnings outlook and better valuation metrics [1][3]. Valuation Metrics - WDC has a forward P/E ratio of 11.67, significantly lower than PSTG's forward P/E of 31.47 [5]. - WDC's PEG ratio is 0.85, while PSTG's PEG ratio is 1.69, suggesting WDC is more undervalued relative to its expected earnings growth [5]. - WDC's P/B ratio stands at 4.98, compared to PSTG's P/B of 14.99, further indicating WDC's relative undervaluation [6]. Zacks Rank and Style Scores - WDC holds a Zacks Rank of 1 (Strong Buy), while PSTG has a Zacks Rank of 3 (Hold), reflecting a stronger improvement in WDC's earnings outlook [3][6]. - WDC's Value grade is B, contrasting with PSTG's Value grade of F, highlighting WDC's superior valuation metrics [6].

Core Insights - Pure Storage will host a conference call on August 27, 2025, to discuss its financial results for the second quarter of fiscal 2026, which ended on August 3, 2025 [1] - The conference call will be accessible via the Pure Storage Investor Relations website, with a replay available for two weeks [2] - Pure Storage is scheduled to participate in a product and technology-focused meeting for financial analysts on September 25, 2025, in New York City [2] Company Overview - Pure Storage delivers advanced data storage technology and services, providing a unified Storage-as-a-Service platform across various environments [4] - The company's Evergreen architecture allows for continuous evolution without planned downtime, enhancing customer capacity and reducing carbon and energy footprints [4] - Pure Storage has received high Net Promoter Scores, indicating strong customer satisfaction [4] Analyst Recognition - Pure Storage is recognized as a leader in the 2024 Gartner Magic Quadrant for Primary Storage Platforms [6] - The company is also a leader in the 2024 Gartner Magic Quadrant for File & Object Storage Platforms [6]

Company Performance - Pure Storage (PSTG) ended the recent trading session at $54.51, demonstrating a -8.42% change from the preceding day's closing price, underperforming compared to the S&P 500's daily loss of 1.6% [1] - Shares of Pure Storage had gained 4.55% in the past month, while the Computer and Technology sector gained 4.45% and the S&P 500 gained 2.25% during the same period [1] Earnings Forecast - The upcoming earnings report for Pure Storage is anticipated to show an EPS of $0.4, reflecting a 9.09% decrease from the same quarter last year, with a forecasted quarterly revenue of $845.76 million, up 10.74% from the year-ago period [2] - For the annual period, the Zacks Consensus Estimates predict earnings of $1.82 per share and revenue of $3.52 billion, indicating increases of +7.69% and +11.01% respectively from the previous year [3] Analyst Estimates and Rankings - Recent adjustments to analyst estimates for Pure Storage are crucial, as upward revisions indicate analysts' positive outlook on the company's operations and profit generation capabilities [3] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently places Pure Storage at 3 (Hold), with the Zacks Consensus EPS estimate having moved 0.39% lower over the last 30 days [5] Valuation Metrics - Pure Storage is trading at a Forward P/E ratio of 32.74, which is a premium compared to the industry average Forward P/E of 13.47 [6] - The company has a PEG ratio of 1.76, which is lower than the industry average PEG ratio of 2.14, indicating a more favorable valuation relative to expected earnings growth [6] Industry Context - The Computer-Storage Devices industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 42, placing it within the top 18% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1, highlighting the competitive strength of the industry [7]

Group 1 - Pure Storage (NYSE: PSTG) was recovering from a decline after its fourth-quarter earnings announcement, which disappointed the market due to full-year guidance falling short of analysts' estimates [1] - Concerns were raised regarding the company's future performance following the earnings report [1] Group 2 - The article does not provide any additional relevant information regarding the industry or company beyond the performance of Pure Storage [2]

Group 1: The Trade Desk - The Trade Desk operates the largest independent demand-side platform (DSP) for digital advertising, recognized for its growth and innovation [4] - The company maintains a strong position in connected TV and retail advertising due to its independent business model, avoiding conflicts of interest seen in companies like Alphabet and Meta Platforms [5] - In Q1, The Trade Desk reported a revenue increase of 25% to $616 million and non-GAAP earnings rose 27% to $0.33 per diluted share, with a customer retention rate above 95% [6] - Wall Street estimates adjusted earnings growth at 12% annually through 2026, with a median target price of $90 per share, indicating a potential 10% upside from the current price of $82 [7] Group 2: Pure Storage - Pure Storage specializes in enterprise data storage products, particularly known for all-flash arrays that utilize flash memory for speed and reliability [9] - The company has been ranked as a leader in primary storage platforms by Gartner for 11 consecutive years and has a high net promoter score of 82, indicating strong customer satisfaction [10] - In Q1, Pure Storage's revenue increased 12% to $778 million, but non-GAAP operating margin fell by four percentage points, and non-GAAP earnings dropped 9% to $0.29 per diluted share [11] - Wall Street expects adjusted earnings to grow at 19% annually through January 2027, with a median target price of $70 per share, suggesting a 25% upside from the current price of $55 [7][13]

Group 1: Stock Performance - Pure Storage (PSTG) stock increased by 1.52% to $58.12, outperforming the S&P 500 which had a daily loss of 0.01% [1] - Over the past month, PSTG shares gained 8.28%, surpassing the Computer and Technology sector's gain of 7.44% and the S&P 500's gain of 5.37% [1] Group 2: Upcoming Earnings - Pure Storage is projected to report earnings of $0.4 per share, reflecting a year-over-year decline of 9.09% [2] - The consensus estimate for revenue is $845.76 million, indicating a 10.74% increase compared to the same quarter last year [2] Group 3: Annual Estimates - For the annual period, earnings are anticipated to be $1.82 per share and revenue is expected to reach $3.52 billion, representing shifts of +7.69% and +11.01% respectively from the previous year [3] - Recent changes to analyst estimates suggest evolving short-term business trends, with positive revisions indicating analysts' confidence in business performance [3] Group 4: Valuation Metrics - Pure Storage has a Forward P/E ratio of 31.47, indicating a premium compared to its industry's Forward P/E of 13.88 [6] - The company holds a PEG ratio of 1.69, while the Computer-Storage Devices industry has an average PEG ratio of 2 [6] Group 5: Industry Ranking - The Computer-Storage Devices industry is part of the Computer and Technology sector, holding a Zacks Industry Rank of 11, placing it in the top 5% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Insights - The global economy is experiencing a data-driven transformation, with artificial intelligence (AI) as the driving force, necessitating high-performance data infrastructure [1][2] - Pure Storage operates in this critical sector, providing essential high-speed data delivery systems that support modern AI applications, presenting a compelling investment opportunity [2] Company Overview - Pure Storage's all-flash technology platform addresses the challenge of data access speed, which is crucial for large-scale AI initiatives [3] - Traditional storage systems are inadequate for AI needs, leading to performance bottlenecks that can hinder significant investments in AI [3] Product Innovation - The company has launched products like FlashArray//XL and FlashBlade//S, designed for the scale required to train large language models, allowing parallel data access without delays [4] - The FlashArray//ST product line is specifically tailored for AI inference, ensuring minimal latency for real-time applications [4] Strategic Partnerships - Pure Storage has established a strong partnership with NVIDIA, integrating its systems into NVIDIA's AI data center blueprints, enhancing its credibility in the AI ecosystem [5] Business Model Transformation - The company has transitioned from a hardware vendor to a platform company focused on high-margin subscription services, enhancing its value proposition [6][7] - This shift has resulted in predictable, recurring revenue, which is favored by investors for its visibility and customer loyalty [8] Financial Performance - In the first quarter of fiscal 2026, Pure Storage reported a revenue growth of 12% to $778.5 million and a free cash flow of $211.6 million [10] - The Annual Recurring Revenue (ARR) reached $1.7 billion, growing 18% year-over-year, with Storage-as-a-Service contract sales increasing by 70% [10] Market Outlook - Analysts project an 11% revenue growth and a non-GAAP operating margin of 17.0%, with a consensus rating of Moderate Buy and an average 12-month price target of $69.95, indicating a potential upside of 20.27% from the current price [9][11]

Core Insights - Zacks Premium offers various tools for investors to enhance their stock market strategies and confidence [1] - The Zacks Style Scores are designed to help investors identify stocks with the highest potential to outperform the market in the short term [2] Zacks Style Scores Overview - The Style Scores consist of four categories: Value Score, Growth Score, Momentum Score, and VGM Score, each focusing on different investment strategies [3][4][5][6] - Value Score identifies undervalued stocks using financial ratios [3] - Growth Score emphasizes a company's financial health and future growth potential [4] - Momentum Score tracks price trends to capitalize on upward or downward movements [5] - VGM Score combines all three styles to highlight stocks with the best overall characteristics [6] Zacks Rank and Its Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to guide investment decisions [7] - Stocks rated 1 (Strong Buy) have historically outperformed the S&P 500, with an average annual return of +25.41% since 1988 [8] - Investors face a challenge in selecting from over 800 top-rated stocks, making the Style Scores a valuable tool for narrowing down choices [8] Stock Analysis: Pure Storage (PSTG) - Pure Storage Inc. is currently rated 3 (Hold) with a VGM Score of B, indicating a mixed outlook [11] - The company has a strong Momentum Style Score of A, with shares increasing by 1.1% over the past four weeks [11] - Recent upward revisions in earnings estimates by analysts have raised the Zacks Consensus Estimate for fiscal 2026 to $1.82 per share, reflecting a positive trend [12] - PSTG has an average earnings surprise of 13.8%, suggesting potential for exceeding expectations [12]

Core Viewpoint - Pure Storage (PSTG) shares have increased by approximately 3.7% since the last earnings report, underperforming the S&P 500 index [1] Group 1: Earnings Report and Market Reaction - The consensus estimate for Pure Storage has decreased by 6.02% over the past month, indicating a flatlining of fresh estimates [2] - The stock has received a Zacks Rank of 3 (Hold), suggesting an expectation of an in-line return in the upcoming months [4] Group 2: VGM Scores - Pure Storage has a strong Growth Score of A, but a low Momentum Score of D, indicating mixed performance across different investment strategies [3] - The stock has been assigned a grade of F on the value side, placing it in the fifth quintile for value investment strategy [3] - The overall aggregate VGM Score for Pure Storage is C, which is relevant for investors not focused on a single strategy [3]