Abstract Investor's avatar
$15.4m follower assets
Pure Storage - Under The Radar & Seemingly Undervalued
I mentioned previously that I really like sales acceleration on the Income Statement. It often translates to analysts underestimating on forecasts and a stock potentially surprising to the upside with momentum and rallies. Well, here's something interesting.
PureStorage ($PSTG) is a hardware and software provider for flash storage in data-centre applications. Apparently, the addressable market has been growing rapidly for flash-based storage, and these guys are some of the best in the game, providing a marriage of hardware and software that performs optimally, and efficiently; above the competition.

Gartner recorded them as an outright leader in the Primary Storage space in 2021.
As it happens, sales have been on an accelerating trend over the last few quarters:

Note the Q4 seasonality as contracts are loaded around Christmas. On a YoY % basis, the last four quarters have recorded:
  • 23%
  • 37%
  • 41%
  • 50%
Either way, sequential growth between the latest Q4 and Q1, was less negative than it has been historically, and the growth rates are pointing up again. And on valuation:

Source: Koyfin
A P/FCF of 15.6x going by the Last Twelve Month figure. I mean, really? That's it? I'm assuming that cash will moderate, but the company is still delivering on a balance of growth and cash together.
While there's some cyclicality to such a business, there's also a semblance of niche industry leadership, and a secular growth trend to follow. This looks outright undervalued for what it ought to be. To add to that, have a look at the latest sales surprises vs. consensus:

Source: Koyfin
In cases of sales acceleration, both management and analysts tend to be conservative in their forecasts. In fact, the forecasts almost always hug the guide, adding virtually no value for short-term catalyst traders. This information disparity could be an opportunity!
It's worth investigating and I'll be diving deep into this one. Initial due diligence has been positive. Storage and flash, especially for data centres, is something that I believe is NOT going to slow down substantially even in a recession. This is central, critical stuff for the modern enterprise.
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Alberto Wallis's avatar
$22.8m follower assets
Upcoming Earnings Calendar, Nov 22-27
A very light earnings week up ahead. I'm mostly interested in Zoom $ZM. I think the stock's valuation is starting to make some sense if they can continue growing their paid user base or adding other features. I'm also interested in seeing what Best Buy $BBY has to say about the consumer demand for electronics and some comments on supply chain issues.

Remember, if you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.

Monday

Tuesday:

Wednesday:

Thursday:

Friday:
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Why would two companies announce on an American holiday when the markets not open, then why would you announce on the day after a holiday, when it's a short trading day. Some companies just make wonder about commonsense.
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Eric Pelnik's avatar
$280.1m follower assets
Earnings this week
📞Which calls are you most excited about?

Monday, May 24th
$API Agora
$PLUG Plug Power

Tuesday, May 25th
$AZO AutoZone
$CBRL Cracker Barrel
$URBN Urban Outfitters
$INTU Intuit
$JWN Nordstrom
$ZS Zscaler

Wednesday, May 26th
$ANF Abercrombie & Fitch
$AEO American Eagle
$NVDA Nvidia
$DKS Dick's Sporting Goods
$ZUO Zuora
$SNOW Snowflake
$PSTG Pure Storage
$PDD Pinduoduo
$WSM Williams-Sonoma
$WDAY Workday
$OKTA Okta

Thursday, May 27th
$PLAN Anaplan
$ADSK Autodesk
$ULTA Ulta Beauty
$BBY Best Buy Co
$BOX Box
$DG Dollar General
$COST Costco Wholesale
$DOMO Domo
$DLTR Dollar Tree
$GPS Gap
$HPQ HP
$YEXT Yext
$CRM Salesforce
$VMW VMWare

Friday, May 28th
$BIG Big Lots

Sources: Business Insider, Google Finance, Yahoo Finance
$CRWD Looking for an overdue bullish move

$COST Hoping for a pullback to re-enter at a better cost basis

Bystander interest in several others 😊
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Eric Pelnik's avatar
$280.1m follower assets
Earnings this week
Which earnings are you most excited about?

Monday, February 22nd
$API Agora
$PANW Palo Alto Networks
$RCL Royal Caribbean Cruises
$ZI ZoomInfo

Tuesday, February 23rd
$VRSK Verisk Analytics
$CROX Crocs
$MCFE Mcafee
$HD Home Depot
$SQ Square
$PUBM PubMatic
$INTU Intuit
$SPT Sprout Social
$UPWK Upwork

Wednesday, February 24th
$BKNG Booking Holdings
$NVDA NVIDIA Corp
$CSPR Casper Sleep
$LOW Lowe's Companies
$ESTC Elastic
$TDOC Teladoc
$OSTK Overstock.com
$PSTG Pure Storage
$NTNX Nutanix
$JMIA Jumia

Thursday, February 25th
$ADT ADT Inc
$PLAN Anaplan
$ABNB Airbnb
$ADSK Autodesk
$BBY Best Buy Co
$BYND Beyond Meat
$NKLA Nikola Corporation
$CVNA Carvana
$KDP Keurig Dr Pepper
$DPZ Domino's Pizza
$ETSY Etsy
$ZS Zscaler
$WDAY Workday
$CRM Salesforce.com
$VMW VMware
$MRNA Moderna
$PLUG Plug Power

Friday, February 26th
$LAMR Lamar Advertising
$DKNG Draftkings

Sources: Business Insider, Google Finance, and Yahoo Finance
Eric Pelnik's avatar
$280.1m follower assets
Earnings this week
Monday, Nov 23rd
$NTNX Nutanix
$URBN Urban Outfitters

Tuesday, Nov 24th
$VMW VMware
$ADSK Autodesk
$DELL Dell
$BBY Best Buy
$DLTR Dollar Tree
$HRL Hormel Foods
$TIF Tiffany
$SJM JM Smucker
$GPS Gap
$PLAN Anaplan
$DKS Dick's Sporting Goods
$PSTG Pure Storage
$JWN Nordstrom

Wednesday, Nov 25th
$DE John Deere

Thursday, Nov 26th
None of interest

Friday, Nov 27th
None of interest

Sources: Business Insider, Google Finance, and Yahoo Finance
Eric Pelnik's avatar
$280.1m follower assets
News today
$CRM Salesforce up 12% in AH on strong earnings report

Palantir files to go public, lost $580M last year

$PSTG Pure Storage down 10% on poor earnings outlook
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