Analyzing Pure Storage (PSTG) For Possible Long Term Position

Company/Stock Description = Pure Storage is one the best ways to invest in data storage these days.

Current Price = $60.29

Number of Earnings Beats in the past 4 Quarters = All Four

One Year Return = 105.07%

Five Year Return = 272.16%

Industry Health and Future = Data storage is one industry that will always be needed and will still likely grow for the foreseeable future. Furthermore, this should be one industry that AI can not take over because it requires hardware.

Trailing PE Ratio = 200.97

Forward PE Ratio = 41.15

Great Business Feature = Subscription Model

Verdict and Price Target = Although far from being a value play due to the massive run up in its stock price over the years, Pure Storage is a stock and company that can fly high for many more years unless it is taken over by a larger company like Brocade and EMC were in the past. Their cash flow is not only positive but still growing and they currently have $1.72 Billion in cash. This is bolstered by the fact that their debt to equity ratio is only at about 19% which makes for a very clean balance sheet.

Thus, I would be a buyer on a pullback like just this Friday when enterprise software stocks took a tumble. My price target would be $100 because really think this stock and the underlying strength of the company can propel PSTG to triple digits in the next year or two, if not sooner!

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