Is Pure Storage Stock a Good Investment?
Pure Storage Investment Advice | PSTG |
- Examine Pure Storage's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Pure Storage's leadership team and their track record. Good management can help Pure Storage navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Technology Hardware, Storage & Peripherals space and any emerging trends that could impact Pure Storage's business and its evolving consumer preferences.
- Compare Pure Storage's performance and market position to its competitors. Analyze how Pure Storage is positioned in terms of product offerings, innovation, and market share.
- Check if Pure Storage pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Pure Storage's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Pure Storage stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Pure Storage is a good investment.
Sell | Buy |
Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Actively responds to the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Pure Storage Stock
Researching Pure Storage's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 85.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 1.46. Pure Storage had not issued any dividends in recent years.
To determine if Pure Storage is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Pure Storage's research are outlined below:
| Pure Storage generated a negative expected return over the last 90 days | |
| Pure Storage has high historical volatility and very poor performance | |
| Over 85.0% of the company shares are owned by institutional investors | |
| Latest headline from zacks.com: NetApp Beats Q2 Earnings and Revenue Estimates |
Pure Storage uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Pure Storage. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Pure Storage's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of March 2024 Upcoming Quarterly Report | View | |
| 29th of May 2024 Next Financial Report | View | |
| 31st of January 2024 Next Fiscal Quarter End | View | |
| 6th of March 2024 Next Fiscal Year End | View | |
| 31st of October 2023 Last Quarter Report | View | |
| 31st of January 2023 Last Financial Announcement | View |
Earnings surprises can significantly impact Pure Storage's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Pure Storage's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2020-11-24 | 2020-10-31 | -0.0022 | 0.01 | 0.0122 | 554 | ||
2017-11-28 | 2017-10-31 | -0.03 | -0.01 | 0.02 | 66 | ||
2019-05-21 | 2019-04-30 | -0.08 | -0.11 | -0.03 | 37 | ||
2017-08-24 | 2017-07-31 | -0.14 | -0.11 | 0.03 | 21 | ||
2023-05-31 | 2023-04-30 | 0.04 | 0.08 | 0.04 | 100 | ||
2021-02-24 | 2021-01-31 | 0.09 | 0.13 | 0.04 | 44 | ||
2019-11-21 | 2019-10-31 | 0.09 | 0.13 | 0.04 | 44 | ||
2019-02-28 | 2019-01-31 | 0.18 | 0.14 | -0.04 | 22 |
Know Pure Storage's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Pure Storage is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Pure Storage backward and forwards among themselves. Pure Storage's institutional investor refers to the entity that pools money to purchase Pure Storage's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Amvescap Plc. | 2024-06-30 | 4.8 M | Bank Of New York Mellon Corp | 2024-06-30 | 3.7 M | Renaissance Technologies Corp | 2024-09-30 | 3.7 M | Polar Capital Holdings Plc | 2024-06-30 | 3.4 M | Bnp Paribas Investment Partners Sa | 2024-06-30 | 3.3 M | Norges Bank | 2024-06-30 | 3.1 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 2.9 M | First Trust Advisors L.p. | 2024-06-30 | 2.8 M | Franklin Resources Inc | 2024-09-30 | 2.6 M | Fmr Inc | 2024-09-30 | 49.2 M | Blackrock Inc | 2024-06-30 | 33.4 M |
Pure Storage's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 16.93 B.Market Cap |
|
Pure Storage's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.02 | (0.12) | |
| Return On Capital Employed | 0.02 | (0.11) | |
| Return On Assets | 0.02 | (0.10) | |
| Return On Equity | 0.05 | (0.38) |
Determining Pure Storage's profitability involves analyzing its financial statements and using various financial metrics to determine if Pure Storage is a good buy. For example, gross profit margin measures Pure Storage's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Pure Storage's profitability and make more informed investment decisions.
Pure Storage's Earnings Breakdown by Geography
Evaluate Pure Storage's management efficiency
Pure Storage has return on total asset (ROA) of 0.0267 % which means that it generated a profit of $0.0267 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.1119 %, meaning that it created $0.1119 on every $100 dollars invested by stockholders. Pure Storage's management efficiency ratios could be used to measure how well Pure Storage manages its routine affairs as well as how well it operates its assets and liabilities. The current Return On Tangible Assets is estimated to decrease to -0.12. The current Return On Capital Employed is estimated to decrease to -0.11. At this time, Pure Storage's Other Assets are most likely to increase significantly in the upcoming years. The Pure Storage's current Other Current Assets is estimated to increase to about 275.2 M, while Total Current Assets are projected to decrease to roughly 1.6 B.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | 4.07 | 2.80 | |
| Tangible Book Value Per Share | 2.81 | 1.17 | |
| Enterprise Value Over EBITDA | 59.70 | (40.91) | |
| Price Book Value Ratio | 10.28 | 8.44 | |
| Enterprise Value Multiple | 59.70 | (40.91) | |
| Price Fair Value | 10.28 | 8.44 |
Understanding the operational decisions made by Pure Storage management offers insights into its financial robustness. This evaluation is crucial for assessing the stock's investment potential.
Beta 1.103 |
Basic technical analysis of Pure Stock
As of the 24th of November, Pure Storage holds the Risk Adjusted Performance of (0.04), coefficient of variation of (1,578), and Variance of 9.88. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Pure Storage, as well as the relationship between them. Please check Pure Storage risk adjusted performance, variance, as well as the relationship between the Variance and potential upside to decide if Pure Storage is priced some-what accurately, providing market reflects its current price of 51.66 per share. Given that Pure Storage has information ratio of (0.10), we recommend you to check out Pure Storage's recent market performance to make sure the company can sustain itself at a future point.Pure Storage's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Pure Storage insiders, such as employees or executives, is commonly permitted as long as it does not rely on Pure Storage's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Pure Storage insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Pure Storage's Outstanding Corporate Bonds
Pure Storage issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Pure Storage uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Pure bonds can be classified according to their maturity, which is the date when Pure Storage has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| Boeing Co 2196 Corp BondUS097023DG73 | View | |
| HSBC Holdings PLC Corp BondUS404280DR76 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand Pure Storage's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Pure Storage's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (0.12) | |||
| Mean Deviation | 2.08 | |||
| Coefficient Of Variation | (1,578) | |||
| Standard Deviation | 3.14 | |||
| Variance | 9.88 | |||
| Information Ratio | (0.10) | |||
| Jensen Alpha | (0.41) | |||
| Total Risk Alpha | (0.70) | |||
| Treynor Ratio | (0.13) | |||
| Maximum Drawdown | 16.8 | |||
| Value At Risk | (6.29) | |||
| Potential Upside | 2.97 | |||
| Skewness | (2.16) | |||
| Kurtosis | 8.87 |
| Risk Adjusted Performance | (0.04) | |||
| Market Risk Adjusted Performance | (0.12) | |||
| Mean Deviation | 2.08 | |||
| Coefficient Of Variation | (1,578) | |||
| Standard Deviation | 3.14 | |||
| Variance | 9.88 | |||
| Information Ratio | (0.10) | |||
| Jensen Alpha | (0.41) | |||
| Total Risk Alpha | (0.70) | |||
| Treynor Ratio | (0.13) | |||
| Maximum Drawdown | 16.8 | |||
| Value At Risk | (6.29) | |||
| Potential Upside | 2.97 | |||
| Skewness | (2.16) | |||
| Kurtosis | 8.87 |
Consider Pure Storage's intraday indicators
Pure Storage intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Pure Storage stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Pure Storage Corporate Filings
F4 | 21st of November 2024 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
13A | 8th of November 2024 An amended filing to the original Schedule 13G | ViewVerify |
10Q | 11th of September 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
8K | 28th of August 2024 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Pure Stock media impact
Far too much social signal, news, headlines, and media speculation about Pure Storage that are available to investors today. That information is available publicly through Pure media outlets and privately through word of mouth or via Pure internal channels. However, regardless of the origin, that massive amount of Pure data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Pure Storage news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Pure Storage relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Pure Storage's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Pure Storage alpha.
Pure Storage Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Pure Storage can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Pure Storage Historical Investor Sentiment
Investor biases related to Pure Storage's public news can be used to forecast risks associated with an investment in Pure. The trend in average sentiment can be used to explain how an investor holding Pure can time the market purely based on public headlines and social activities around Pure Storage. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Pure Storage's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Pure Storage and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Pure Storage news discussions. The higher the estimate score, the more favorable the investor's outlook on Pure Storage.
Pure Storage Corporate Directors
| Anita Sands | Independent Director | Profile | |
| Jeffrey Rothschild | Independent Director | Profile | |
| John Colgrove | Founder, Chief Technology Officer, Director | Profile | |
| Mark Garrett | Independent Director | Profile |
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Pure Storage. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate. For more detail on how to invest in Pure Stock please use our How to Invest in Pure Storage guide.You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Is Technology Hardware, Storage & Peripherals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Pure Storage. If investors know Pure will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Pure Storage listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.14) | Earnings Share 0.43 | Revenue Per Share 9.4 | Quarterly Revenue Growth 0.109 | Return On Assets 0.0267 |
The market value of Pure Storage is measured differently than its book value, which is the value of Pure that is recorded on the company's balance sheet. Investors also form their own opinion of Pure Storage's value that differs from its market value or its book value, called intrinsic value, which is Pure Storage's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Pure Storage's market value can be influenced by many factors that don't directly affect Pure Storage's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Pure Storage's value and its price, as these two are different measures arrived at by various means. Investors typically determine if Pure Storage is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Pure Storage's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.