PSTG Should I Buy
-
$
0.000
0.000(0.000%)
At close0.000(0.000%)Aft-market
ET
Loading...
Pure Storage Inc (PSTG) is not a strong buy at the moment for a beginner investor with a long-term strategy. While the company has shown revenue growth and strong gross margins, its net income and EPS have declined. Analysts' ratings are mixed, with some expressing concerns about margins and hyperscaler revenue scaling. Additionally, there are no strong trading signals or significant insider or hedge fund activity to support a buy decision. The options data and technical indicators suggest a neutral to slightly bullish sentiment, but the lack of clear positive catalysts and the presence of some risks make it prudent to hold off on buying at this time.
The technical indicators are mixed. The MACD is positive but contracting, RSI is neutral at 47.166, and moving averages are bullish (SMA_5 > SMA_20 > SMA_200). Key support and resistance levels are Pivot: 70.477, R1: 75.374, S1: 65.58, R2: 78.4, S2: 62.554. The stock has a 50% chance of declining -1.3% in the next day and -5.03% in the next week, with a potential 6.54% gain in the next month.
Gross margin improved to 72.31%, up 3.09% YoY. Analysts acknowledge strong performance compared to legacy storage peers and highlight Pure Storage's superior storage density and power efficiency for AI workloads.
Analysts express concerns about margin risks, increased operating expenses, and delays in scaling hyperscaler revenue. No significant insider or hedge fund activity. Stock trend analysis indicates potential short-term downside.
In Q3 2026, revenue grew to $964.45M, up 16.05% YoY. However, net income dropped to $54.81M (-13.88% YoY), and EPS fell to $0.16 (-15.79% YoY). Gross margin improved to 72.31%, up 3.09% YoY.
Analyst ratings are mixed. UBS maintains a Sell rating with a $60 target, while TD Cowen and Citi maintain Buy ratings with $100 and $105 targets, respectively. Concerns include margin risks, increased OpEx, and delayed hyperscaler revenue scaling. Some analysts highlight strong performance and enterprise demand but note potential volatility ahead.
