Pure Storage (PSTG): Buy the Dip!

There is a grave injustice taking place this earnings season. That is where stocks that report impressive earnings on most levels, but have 1 small blemish in the announcement are getting pounded into submission. 

This creates a phenomenal “buy the dip” opportunity to get on board growth juggernaut Pure Storage (PSTG) at absurdly low price. 

Let’s take it from the top…

Pure Storage is a thriving technology company enjoying the boost coming from the AI revolution. This shows up in flying colors from their two most recent earnings beats; 52% and 19% respectively. This means they are enjoying the reality of AI....not fantasies or "vapor ware" like most AI stock stories.  

As shared in the intro, amazingly these shares got chopped down 15% after the reported 44 cents per share…well above the 37 cent estimate. This includes a solid revenue beat and even raised guidance for the coming quarter. 

The one little blemish in the announcement was that full year guidance showed a slight reduction in profit margin even though analysts still raised their estimates after the report. 

Nothing about this equates to a 15% sell off. That is why top Wall Street analysts are now pounding the table to back up the truck on shares at these discounted levels. 

In fact there are 3 top rated analysts all seeing fair value at $70 including:

Simon Leopold, Raymond James (Top 10%)

Krish Sankar, TD Cowen (Top 7%)

Amit Daryanani, Evercore ISI Group (Top 4%)

What is drawing these top analysts to PSTG is that they have had over 20 straight earnings beats. This sensational growth trajectory has led to a 7X gain for shares from the 2020 lows. Gladly for us shares are now more well off their highs thanks to some profit taking in the tech group along with the aforementioned earnings season anomaly. 

Just for good measure I should mention that the POWR Ratings model is also picking up on fundamental prowess of the firm. this with a Quality score in the top 4% of the 5,300 stocks analyzed. Even better is the top 1% rating for Growth (actually top 0.25%). These are the 2 most important factors pointing to increased likelihood of more impressive earnings reports on the horizon. 

This fundamental excellence noted above also shows up in the Zen Ratings score of 54...well atop their industry average of 28. 

Let’s take advantage of these oversold conditions to add PSTG to our portfolio. If their impressive earnings tradition continues it is not hard seeing a doubling of shares before we close the books on 2025. 

What To Do Next?

Pure Storage (PSTG) is just one of the 11 timely stocks found in my Zen Investor portfolio.

To learn more about my exclusive 4 step process to find more 100%+ stock winners...and to get your hands on the current top 11 recommendations…then all you need to do is click the link below. 

Discover the Zen Investor portfolio > 

p.s. The next 2 stock additions will be shared on Wednesday 9/4. Click above to get those timely picks. 

Wishing you a world of investment success!

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

Want to get in touch? Email us at news@wallstreetzen.com.