Pure Storage Jumps 39% Year to Date: What Lies Ahead for the Stock?

Zacks09-30

Pure Storage, Inc’s PSTG shares have been performing well on the trading front, with a gain of 38.7% year to date. Headquartered in Mountain View, CA, Pure Storage provides software-defined all-flash ...

Source Link

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2471317389?lang=en_US&edition=fundamental","thumbnail":"https://s.yimg.com/uu/api/res/1.2/hb34T5JpqfOKFdxuauyatA--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/560ce7090345bb7408c706b8e0a8c3fc","is_english":true,"pubTime":"2024-09-30 20:43","share_image_url":"https://static.laohu8.com/5f26f4a48f9cb3e29be4d71d3ba8c038","id":"2471317389","market":"us","top_or_hot":-1,"title":"Pure Storage Jumps 39% Year to Date: What Lies Ahead for the Stock?","media":"Zacks","content":"<div>\n<p>Pure Storage, Inc’s PSTG shares have been performing well on the trading front, with a gain of 38.7% year to date. Headquartered in Mountain View, CA, Pure Storage provides software-defined all-flash ...</p>\n\n<a href=\"https://finance.yahoo.com/news/pure-storage-jumps-39-date-124300089.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Pure Storage Jumps 39% Year to Date: What Lies Ahead for the Stock?</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPure Storage Jumps 39% Year to Date: What Lies Ahead for the Stock?\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-09-30 20:43 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/pure-storage-jumps-39-date-124300089.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Pure Storage, Inc’s PSTG shares have been performing well on the trading front, with a gain of 38.7% year to date. Headquartered in Mountain View, CA, Pure Storage provides software-defined all-flash ...</p>\n\n<a href=\"https://finance.yahoo.com/news/pure-storage-jumps-39-date-124300089.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00B894F039.SGD","symbol_name":"Legg Mason ClearBridge - US Aggressive Growth A Acc SGD-H","start_time":0,"source_url":"https://finance.yahoo.com/news/pure-storage-jumps-39-date-124300089.html","article_id":"2471317389","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/hb34T5JpqfOKFdxuauyatA--~B/aD00MDA7dz02MzU7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/560ce7090345bb7408c706b8e0a8c3fc"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2471317389","pubTimestamp":1727700180,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Pure Storage, Inc’s PSTG shares have been performing well on the trading front, with a gain of 38.7% year to date. Headquartered in Mountain View, CA, Pure Storage provides software-defined all-flash solutions that are uniquely fast and cloud-capable for its customers.The stock has outperformed its sub-industry, the Zacks Computer and Technology sector and the S&P 500 composite’s growth of 34.6%, 23.7% and 20.6%, respectively.Closing at $49.44, the stock is down 30% from its 52-week high level of $70.41, reached on June 18, 2024. PSTG trades below its 50-day moving average and this suggests a bearish trend.Higher sales to new and existing enterprise customers across the data storage platform are tailwinds. In the second quarter of fiscal 2025, Pure Storage added more than 261 new customers. At the end of the quarter, the company’s customer count was more than 13,000, including 62% of the Fortune 500 companies. Improving penetration into Global 2000 and Fortune 500 bodes well. We believ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00B894F039.SGD":"Legg Mason ClearBridge - US Aggressive Growth A Acc SGD-H","LU2433249047.HKD":"THEMATICS META \"R/A\" (HKD) ACC","LU1923622614.USD":"Natixis Thematics Meta R/A USD","LU1854103824.USD":"M&G (LUX) POSITIVE IMPACT \"A\" (USD) INC","LU2238339852.HKD":"NINETY ONE GSF GLOBAL ENVIRONMENT \"A\" (HKD) ACC","PSTG":"Pure Storage Inc","BK4170":"电脑硬件、储存设备及电脑周边","LU2360107168.USD":"BGF NEXT GENERATION TECHNOLOGY \"A4\" (USD) INC","LU2290526834.HKD":"BGF NEXT GENERATION TECHNOLOGY \"A2\" (HKDHDG) ACC","LU0390134368.USD":"FRANKLIN GLOBAL GROWTH \"A\" (USD) ACC","ANSS":"安斯科技","BK4023":"应用软件","IE00BZ199S13.USD":"BNY MELLON MOBILITY INNOVATION \"B\" (USD) ACC","LU2298064838.USD":"NINETY ONE GSF GLOBAL ENVIRONMENT \"A\" (USD) INC","IE00B19Z9P08.USD":"LEGG MASON CLEARBRIDGE US AGGRESSIVE GROWTH \"A\" (USD) INC","LU1854104046.USD":"M&G (LUX) POSITIVE IMPACT \"A\" (USD) ACC","STX":"希捷科技","BK4585":"ETF&股票定投概念","LU1721428933.USD":"法巴全球经典环境基金RH MD Dis","IE00B19Z9Z06.USD":"Legg Mason ClearBridge - US Aggressive Growth A Acc USD","LU2125909247.SGD":"Natixis Thematics Meta H-R/A SGD","LU1861214812.USD":"Blackrock Future of Transport A2 USD","LU1861219969.SGD":"Blackrock Future of Transport A2 SGD-H","IE00BD6J9T35.USD":"NEUBERGER BERMAN NEXT GENERATION MOBILITY \"A\" (USD) ACC","LU1861215975.USD":"贝莱德新一代科技基金 A2","BK4588":"碎股","LU1951198990.SGD":"Natixis Thematics AI & Robotics Fund H-R/A SGD-H","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","LU1951200564.SGD":"Natixis Thematics AI & Robotics Fund R/A SGD","LU2125909593.SGD":"Natixis Thematics Meta R/A SGD","LU1939255532.USD":"NINETY ONE GSF GLOBAL ENVIRONMENT \"A\" (USD) ACC","LU0963586101.USD":"ALLIANZ GLOBAL SMALL CAP EQUITY \"AT\" ACC","LU1923623000.USD":"Natixis Thematics AI & Robotics Fund R/A USD","BK4512":"苹果概念"},"translate_title":"Pure Storage今年迄今上涨39%：该股的前景如何？","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ANSS":1,"STX":1,"PSTG":1,"AMSWA":1},"content_text":"Pure Storage, Inc’s PSTG shares have been performing well on the trading front, with a gain of 38.7% year to date. Headquartered in Mountain View, CA, Pure Storage provides software-defined all-flash solutions that are uniquely fast and cloud-capable for its customers.\nThe stock has outperformed its sub-industry, the Zacks Computer and Technology sector and the S&P 500 composite’s growth of 34.6%, 23.7% and 20.6%, respectively. \nYTD Price Performance\nImage Source: Zacks Investment Research\nClosing at $49.44, the stock is down 30% from its 52-week high level of $70.41, reached on June 18, 2024.  PSTG trades below its 50-day moving average and this suggests a bearish trend.\nImage Source: Zacks Investment Research\n\nLet’s dive into PSTG’s prospects and determine the best course of action for your portfolio.\nHigher Demand for FlashBlade Drives PSTG’s Top Line\nPSTG is riding on strong demand for its FlashBlade solutions, including FlashArray//E, Flashblade//E, FlashArray//C and subscription-based offerings. FlashBlade//E is an unstructured data repository solution for large-capacity data stores. Customers can also deploy this latest solution through a new service tier of PSTG's Evergreen//One Storage as-a-Service subscription. Higher subscription revenues are other growth catalysts. In the last reported quarter, Subscription services revenues (47.3%) of $361.2 million rose 25% on a year-over-year basis.The rapid advances in AI technology are opening up several market opportunities for Pure Storage in various market segments. It announced several critical new platform features aimed at addressing the evolving needs of enterprise customers amid a rapid proliferation of AI in the second quarter. The most notable move was the introduction of Evergreen//One, the first storage-as-a-service solution specifically designed for AI workloads. This offering is expected to be beneficial for enterprises looking to deploy AI at scale, providing them with a storage solution that streamlines the management of AI data. Pure Storage also announced enhancements to Pure Fusion, a platform that delivers first-of-its-kind storage automation. These advancements further reduce the complexity of managing enterprise storage environments by removing the data silos of existing enterprise data storage systems, enabling customers to achieve greater efficiency and agility in their operations. In addition, the company introduced an industry-first generative AI copilot for storage.\nPSTG’s Growing Customer Base\nHigher sales to new and existing enterprise customers across the data storage platform are tailwinds. In the second quarter of fiscal 2025, Pure Storage added more than 261 new customers. At the end of the quarter, the company’s customer count was more than 13,000, including 62% of the Fortune 500 companies. Improving penetration into Global 2000 and Fortune 500 bodes well. We believe that the customer base would continue to expand driven by the impressive product portfolio, innovative pipeline and strong partner base.\nPSTG’s Sound Capital Allocation Strategy\nPure Storage has a strong balance sheet with ample liquidity position. It exited the fiscal second quarter that ended on Aug. 4 with cash, cash equivalents and marketable securities of $1.8 billion. The company had a long-term debt of $0.1 million as of Aug. 4, 2024. Cash flow from operations amounted to $226.6 million in the fiscal second quarter compared with $101.6 million in the prior-year quarter. Free cash flow was $166.6 million compared with $46.5 million a year ago. Robust liquidity and cash flow reflect that the company is making investments in the right direction.In the fiscal second quarter, the company did not repurchase any shares due to trading restrictions. PSTG has $395 million left under its authorization plan.\nPSTG Lowers Outlook for TCV Sale\nPSTG lowered guidance for total contract value (“TCV”) sales for Evergreen//One and Evergreen//Flex subscription service offerings. It now expects TCV sales to be $500 million, implying 25% growth from a year ago. Earlier, the company forecasted TCV sales to be $600 million, implying 50% growth from a year ago. Following the outlook revision on Aug. 28, the stock has lost 17.2% of its value so far. Pure Storage is witnessing stretched closing deadlines for larger Evergreen//One deals. In the first half of 2024, the company was able to finalize only three Evergreen//One deals compared with multiple deals of large scale being settled in the prior-year period. Owing to the extended closure timing, the deals are getting shifted to the subsequent quarters. This ripple effect is forcing the company to lower its outlook for Evergreen//One and Evergreen//Flex solutions.Moreover, the uncertain macroeconomic environment and cautious IT spending amid stiff competition in the all-flash business remain concerning.\nOutlook Causes Downward Revision in Estimates for PSTG\nFollowing the outlook revision, analysts seem bearish about the stock as suggested by the downward revision in earnings estimates.\nIn the past 60 days, analysts have decreased their earnings estimates for the current quarter and next by 2.3% and 6%, respectively, to 43 cents and 47 cents per share. The earnings estimate for the next year has also been revised downward by 1.6% to $1.91.\nHowever, the earnings estimate for the current year has been revised upward by 1.2% to $1.66.\nPSTG’s Expensive Valuation a Concern\nPSTG’s stock is trading at a premium with a forward 12-month Price/Earnings of 27.12X compared with the industry’s 15.01X. Though the lofty valuation reflects high expectations for growth, the near-term prospects of the company remain somewhat muddled.\nImage Source: Zacks Investment Research\nPSTG’s Zacks Rank\nPSTG carries a Zacks Rank #3 (Hold) at present.\nA nuanced approach is needed while dealing with PSTG. The stock has a solid growth opportunity driven by demand for its FlashBlade solutions and the rapid proliferation of AI. However, the expensive valuation and lowered TCV outlook warrant caution. Consequently, it might not be a prudent investment decision to bet on the stock at the moment. However, long-term stakeholders and investors already owning the stock can stay put.\nStocks to Consider\nSome better-ranked stocks worth consideration in the broader technology space are Seagate Technology Holdings plc STX, American Software, Inc. AMSWA and ANSYS ANSS. While Seagate sports a Zacks Rank #1 (Strong Buy), AMSWA and ANSYS carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.\nThe Zacks Consensus Estimate for STX’s fiscal 2025 EPS is pegged at $7.41, unchanged in the past 30 days. STX’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in the remaining quarter, with the average surprise being 80.9%. The stock has surged 64.3% in the past year.\nThe Zacks Consensus Estimate for American Software’s 2024 EPS is pegged at 38 cents, unchanged in the past seven days. AMSWA’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while matching in the remaining quarter, with the average surprise being 84.5%. Its shares have declined 3.3% in the past year.\nThe Zacks Consensus Estimate for ANSS’ 2024 earnings is pegged at $9.96, unchanged in the past 30 days. ANSS’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing the mark once, with the average surprise being 4.8%. Its shares have gained 9.4% in the past year.\nWant 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\nSeagate Technology Holdings PLC (STX) : Free Stock Analysis Report\nANSYS, Inc. (ANSS) : Free Stock Analysis Report\nAmerican Software, Inc. (AMSWA) : Free Stock Analysis Report\nPure Storage, Inc. (PSTG) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.2","shortVersion":"4.29.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2471317389"}