Pure Storage Story

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PSTG -- USA Stock  

USD 14.86  0.40  2.62%

As many rational traders are trying to avoid technology space, it makes sense to digest Pure Storage a little further and understand how it stands against SEIKO EPSON and other similar entities. We are going to discuss some of the competitive aspects of both Pure Storage and SEIKO.
Published over three weeks ago
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Is SEIKO more volatile than Pure Storage (NYSE:PSTG)?
By analyzing existing basic indicators between Pure Storage and SEIKO, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in SEIKO with a short position in Pure Storage. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Pure Storage has an asset utilization ratio of 192.93 percent. This indicates that the company is making $1.93 for each dollar of assets. An increasing asset utilization means that Pure Storage is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Pure Storage or Arista is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Pure Storage's Liquidity

Pure Storage financial leverage refers to using borrowed capital as a funding source to finance Pure Storage ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Pure Storage financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Pure Storage's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Pure Storage, but it might be worth checking our own buy vs. sell analysis

Correlation Between Pure Storage and Arista Networks

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Pure Storage together with similar or unrelated positions with a negative correlation. For example, you can also add Arista Networks to your portfolio. If Arista Networks is not perfectly correlated to Pure Storage it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Pure Storage for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between PSTG and ANET for more information.


Are you currently holding both Pure Storage and Arista Networks in your portfolio? Please note if you are using this as a pair-trade strategy between Pure Storage and Arista Networks, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Breaking down Pure Storage Indicators

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Lets now check Pure Storage revenue. Based on the latest financial disclosure, Pure Storage reported 1.68 B of revenue. This is 58.78% lower than that of the Technology sector and significantly higher than that of the Computer Hardware industry. The revenue for all United States stocks is 82.19% higher than that of Pure Storage. As for SEIKO EPSON we see revenue of 10.05 B, which is much higher than that of the Computer Hardware

10.1 B
PSTG1.68 Billion14.32
SEKEF10.05 Billion85.68

Pure Storage showing appearance of lower volatility

The variance is down to 8.73 as of today. Pure Storage shows above-average downside volatility for the selected time horizon. We advise investors to inspect Pure Storage further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Pure Storage future alpha.

Our Final Take On Pure Storage

When is the right time to buy or sell Pure Storage? Buying stocks such as Pure Storage isn't very hard. However, what challenging for most investors is doing it at the right time. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities, deliver winning trades and diversify portfolios on a daily bases. All things considered, as of the 24th of August 2020, our final 30 days buy-or-sell advice on the firm is Strong Sell. However, we believe Pure Storage is fairly valued with low odds of financial distress for the next two years.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Ellen Johnson do not own shares of Pure Storage. Please refer to our Terms of Use for any information regarding our disclosure principles.

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