65.8 F
New York
Saturday, September 26, 2020

Pure Storage Inc. (NYSE:PSTG) on the Path to Profitability

Must read

Renewed Optimism is Surrounding Novan Inc. (NASDAQ:NOVN)

Novan Inc. (NOVN) shares are trading at lower $0.49 and the avg recommendation for the stock is Moderate Buy. To add more color to...

Is Now the Time to Invest in Johnson Controls International plc (NYSE:JCI)?

Johnson Controls International plc (JCI) shares are trading at higher $40.93 and the avg recommendation for the stock is Moderate Buy, while the current...

Synchrony Financial (NYSE:SYF) is Gaining Momentum on Earnings Catalyst

Synchrony Financial (SYF) shares are trading at lower $24.77 and the avg recommendation for the stock is Strong Buy, while the current analyst price...

WPX Energy Inc. (NYSE:WPX) on the Path to Profitability

WPX Energy Inc. (WPX) shares are trading at higher $4.41 and the avg recommendation for the stock is Strong Buy. To add more color...

The Pure Storage Inc. (PSTG) shares are trading at higher $17.86 and the avg recommendation for the stock is Moderate Buy. while the current analyst price target stands at $20.37.

To add more color to this target, the company’s high over the last year is $20.50 and the low is $7.93. Over the last 52 weeks, PSTG is down -12.88% while the S&P 500 is up 0.79%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, PSTG reported a profit of $256.82 million. Pure Storage Inc. also saw revenues increase to $367.12 million. In addition, PSTG has free cash flow of $11.32 million as of 04-2020. The company’s EBITDA came in at -$62.81 million which compares well with its peers.

PSTG booked profit margins of -11.40%, its Return on Equity (ROE) is -24.70%, and its Return on Assets is -8.60%. All told, it is clear that, PSTG needs to be on your watchlist.

Find out when PSTG reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.

Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. PSTG has a short ratio of 5.62 and outstanding shares of 262.94M.

Company Outlook

PSTG has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 3.3 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.74. Pure Storage Inc. PSTG also noted assets of $2.25 billion at the end of the last quarter. Investors should also keep an eye on sector updates as PSTG has historically followed its peers on positive news.

All told, Pure Storage Inc. PSTG has strung together solid data and demonstrated underlying fundamentals. At its current valuation, PSTG represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Pure Storage Inc. PSTG is now commanding a market cap of 4.62B and a float of 243.36M. PSTG is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of PSTG stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in PSTG, either long or short, and we have not been compensated for this article.

Latest article

Axalta Coating Systems Ltd. (NYSE:AXTA) on the Path to Ruin

Axalta Coating Systems Ltd. (AXTA) shares are trading at lower $21.63 and the avg recommendation for the stock is Moderate Buy, while the current...

Is Now the Time to Invest in Agnico Eagle Mines Limited (NYSE:AEM)?

Agnico Eagle Mines Limited (AEM) shares are trading at higher $78.28 and the avg recommendation for the stock is Moderate Buy, while the current...

AIkido Pharma Inc. (NASDAQ:AIKI) Stock is Plummeting, Here is Why

AIkido Pharma Inc. (AIKI) shares are trading at lower $0.55. To add more color to this target, the company’s high over the last year...

Muscle Maker Inc. (NASDAQ:GRIL) is Holding Steady

Muscle Maker Inc. (GRIL) shares are trading at lower $1.44. To add more color to this target, the company’s high over the last year...

Investor Confidence is Falling for MICT Inc. (NASDAQ:MICT)

MICT Inc. (MICT) shares are trading at lower $3.08 and the avg recommendation for the stock is Moderate Buy, while the current analyst price...