Pure Storage

PSTG

Market cap $23.3B

Pure Storage (PSTG) closed the most recent trading day at $66.98, moving +1.95% from the previous trading session.

Pure Storage (PSTG) closed at $65.7 in the latest trading session, marking a -4.21% move from the prior day.

Pure Storage (PSTG) has been one of the stocks most watched by Zacks.com users lately. So, it is worth exploring what lies ahead for the stock.

Shares of the all-flash storage company – Pure Storage (NASDAQ: PSTG) – have risen over 20% in the previous six months, driven by the company's essential role in delivering power-efficient, high-density arrays for AI data centers. Nonetheless, despite these favorable conditions, we consider the stock to be unattractive at its valuation of approximately $70.

Western Digital leads the highly concentrated HDD market, benefiting from scale, advanced UltraSMR technology, and a dominant data center presence post-SanDisk spin-off. Pure Storage excels in all-flash arrays with a dual revenue model and stable subscription growth but faces slowing growth and increased competition in a more fragmented market. Both companies have their own unique strengths, but only one trades at attractive price levels to provide a decent upside.

Nvidia's graphics processing units are the industry standard in artificial intelligence infrastructure, but the company is truly formidable due to its full-stack strategy. Meta Platforms is using artificial intelligence to improve engagement and advertising conversion rates across its portfolio of industry-leading social media properties.

Pure Storage (PSTG) reached $69.01 at the closing of the latest trading day, reflecting a +2.98% change compared to its last close.

Pure Storage (PSTG) is undervalued after a 30%+ share price decline, despite strong recent results and raised guidance. Concerns about margin compression are overstated; PSTG's operating and gross margins are expanding, driven by high-margin hyperscaler royalties. PSTG continues to gain market share in all-flash storage, with competitive advantages in energy efficiency, density, and technology.

Zacks.com users have recently been watching Pure Storage (PSTG) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

The S&P 500 has nearly doubled over the past three years, partly because of all the excitement over artificial intelligence.