Top Storage Stock to Buy With $500 Right Now
Key Points
Everpure's leadership says AI is pushing companies to organize around data, and the business is accelerating as a result.
Revenue growth has sped up for eight straight quarters, and management expects a recent hyperscaler deal to generate "significant" revenue starting in fiscal 2028.
Volatility in flash prices is the key risk, but the stock trades at a reasonable multiple relative to expected earnings growth.
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Everpure (NYSE: P), formerly known as Pure Storage, is my top storage stock to buy right now. With the share price at $141 as of Oct. 5, a $500 investment buys three shares. Artificial intelligence (AI) is changing how companies handle data -- fueling accelerating demand for Everpure.
It's a leader in all-flash storage systems and software services for storing, managing, and protecting enterprise data. "We believe that our business is accelerating," CEO Charlie Giancarlo said at the Sept. 23 investor meeting.
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AI is pushing organizations to manage around data rather than applications, creating a huge opportunity for the company.
Image source: Getty Images.
Everpure just won a second top-5 cloud deal
Everpure's competitive edge lies in how its software works with flash memory. Giancarlo called solid-state drives (SSDs) just "flash masquerading as a hard drive" at the June 2026 Evercore Global TMT conference. Everpure builds its own flash modules that run on its Purity operating system, delivering 30%-40% better price performance than SSDs alone.
The cost savings it can deliver to customers are driving demand, as shown in its results. Revenue grew 38% year over year in the August-ending fiscal second quarter of 2026, up from 13% in the year-ago quarter. The top line has accelerated for eight straight quarters.
Everpure benefits from higher prices, even as the market can be volatile. However, Giancarlo said on the company's fiscal Q2 earnings call in August 2026 that "this higher growth rate will be sustainable for some time."
On Aug. 10, the company announced a design win and supply agreement with a second unnamed top-five hyperscaler. Giancarlo said this new agreement will generate "significant" revenue in fiscal 2028 and beyond. That makes the company's trajectory look more like a long-term story than a temporary growth spurt.
The stock trades at a forward PEG multiple of 1.1
The main risk is that elevated prices could reverse. The company cited historic industry price increases in its fiscal Q2 earnings report as the reason for the strong results.
However, Everpure's software-based approach requires less memory and storage, which allows it to raise prices less than competitors. Demand has remained robust even at these record selling prices.
The stock is trading at 50 times forward earnings estimates, with analysts projecting earnings to grow 43% this year. That's a reasonable P/E-to-growth (PEG) multiple of 1.16x.
Everpure stock is currently near new highs after surging 94% over the past three months, so investors should expect some volatility. But the company appears well-positioned to meet growing demand in the coming years, which could send the stock higher.
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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Everpure. The Motley Fool has a disclosure policy.
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