Why Pure Storage (PSTG) is a Top Growth Stock for the Long-Term

Core Insights - The article emphasizes the importance of the Zacks Rank and Style Scores in helping investors make informed decisions and maximize their investment potential [4][18]. Zacks Rank - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to assist investors in building successful portfolios [4]. - Stocks rated 1 (Strong Buy) have historically produced an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [5]. - There are over 200 companies with a Strong Buy rank and an additional 600 with a 2 (Buy) rank available at any given time [5]. Style Scores - The Style Scores categorize stocks based on three investing styles: Value, Growth, and Momentum, providing complementary indicators to the Zacks Rank [18]. - A stock with a 4 (Sell) or 5 (Strong Sell) rating, even with high Style Scores, is likely to experience a decline in share price due to a downward-trending earnings forecast [7]. - The VGM Score combines all three Style Scores, helping investors identify stocks with attractive value, strong growth forecasts, and promising momentum [22]. Company Spotlight: Pure Storage Inc. (PSTG) - Pure Storage Inc. (PSTG) is rated 3 (Hold) on the Zacks Rank, with a VGM Score of B, indicating a solid position among stocks [12]. - PSTG has a Growth Style Score of A, forecasting a year-over-year earnings growth of 14.8% for the current fiscal year [9]. - Six analysts have revised their earnings estimates higher for fiscal 2025, with the Zacks Consensus Estimate increasing by $0.04 to $1.63 per share [13].