P · Everpure
Conviction · Low · more likely to lag the S&P 500 over the next three months
Wrong if: a daily close above $122.47
Note written ·
Price against the kill line
11.8% clear of its kill line on the 13 November 2026 close.
How to read this
This note expects the shares to lag the market, so its kill line sits above the price: a close above the red mark would prove the view wrong. Prices run from low on the left to high on the right. The dot is where the stock closed on 13 November 2026, left of the mark while it is below the line; a dot right of the mark has closed through it.
The scale is stretched near the line, so close calls are easy to see. More than 8% from the line, the stock reads well clear, with a hollow dot to show the figure is off the drawn scale.
The kill line is the research note's own test. The portfolio sells on business facts, not on a price. How the portfolio decides
Three months against the kill line
Daily closes, to . Red: the kill line, a daily close above $122.47, on record since 11 November 2026. The shares are down 7.7% since the close; the S&P 500 is down 2.1% over the same sessions. Figures in the note can cover a different window.
Kill line
A daily close above $122.47, which would put the shares back over their 50-day moving average and show them leading the S&P 500. A third-quarter fiscal-2027 report that lifts fiscal-2027 revenue guidance above the $5.07 billion top of the current range would also show the shares leading.
Research onlyNot in the portfolio.
Catalyst
Key figures from the filings · Technology
Quarter to 2 August 2026, filed 4 September 2026; valuation at the 13 November 2026 close
- Revenue, latest quarter ($M)
- 1,186
- Revenue, change on a year (%)
- +37.7
- Gross margin (%)
- 68.4
- Operating margin (%)
- 5.3
- Free cash flow, four quarters ($M)
- 128
- Price to earnings (×)
- 142.1
- Free-cash-flow yield (%)
- 0.4
All filed numbers
What Everpure reports to the SEC in its quarterly and annual filings. Each group states its period and filing date once; a figure dated otherwise says so. Built from the filings known on .
| Quarter to | Revenue ($M) | On a year (%) | Gross margin (%) | Operating margin (%) |
|---|---|---|---|---|
| first filed | 1,186 | +37.7 | 68.4 | 5.3 |
| first filed | 1,053 | +35.2 | 68.7 | 1.9 |
| first filed | 1,059 | +20.4 | 69.9 | 8.2 |
| first filed | 965 | +16.0 | 72.3 | 5.6 |
| first filed | 861 | +12.7 | 70.2 | 0.6 |
| first filed | 779 | +12.3 | 68.9 | −4.0 |
| Pre-tax income ($M) | 72.2 |
| Net income ($M) four quarters: 253 | 74.1 |
| Diluted shares, change on a year (%) against the quarter to 3 August 2025 | +2.3 |
| Operating cash flow ($M) | 428 |
| Capital spending ($M) | 300 |
| Free cash flow ($M) | 128 |
| Cash and short-term investments ($M) | 386 |
| Debt ($M) | Not available |
| Net cash, cash less debt ($M) | Not available |
| Deferred revenue ($M) +31.9% on a year | 2,521 |
| Backlog, orders not yet delivered ($M) +46.4% on a year | 4,100 |
| Receivables ($M) | 1,028 |
| Inventory ($M) | 106 |
| Shareholders' equity ($M) | 1,541 |
| Market value ($M) | 35,985 |
| Enterprise value, market value plus net debt ($M) | Not available |
| Enterprise value to sales (×) | Not available |
| Enterprise value to operating income (×) | Not available |
| Price to earnings (×) | 142.1 |
| Price to book value (×) | 23.4 |
| Free-cash-flow yield (%) | 0.4 |
Short interest (FINRA, settled 15 October 2026, published 26 October 2026): 2.7% of shares outstanding sold short, 1.9 days of average trading to cover, +11.4% since the previous report.
| Window | Bought | Sold |
|---|---|---|
| 90 daysfrom | $0 | $155.8M |
| 12 monthsfrom | $0 | $363.3M |
The thesis
Everpure's shares look more likely to lag than lead the S&P 500 over the next three months. Storage stocks are selling strong results, and Everpure fell 16.4% on 5 November 2026 in a sector-wide drop, per GuruFocus. The third-quarter fiscal-2027 report on 18 November 2026 settles whether results back the $7.0 billion–$7.3 billion fiscal-2028 revenue outlook.
Everpure confirmed on 28 October 2026 that its third-quarter call is on 18 November 2026 at 2:00 p.m. Pacific, for the quarter that ended 1 November 2026. The company's guide for that quarter, from its 26 August 2026 prepared remarks, is revenue of $1.325 billion–$1.335 billion and non-GAAP operating income of $265 million–$275 million.
The shares closed at $106.50 on 11 November 2026, 32.4% below the 52-week intraday high of $157.57 set on 13 October 2026. That close is below the 50-day average of $120.6 and above the 200-day average of $86.9. UBS, the one Sell rating among the analysts tracked by MarketBeat, raised its target to $88 on 12 November 2026 and kept the Sell rating, per company news. The shares trade above that target.
Bullish and bearish views on Everpure, Inc.
The bull case on Everpure, Inc. (P), in brief: Fiscal-2028 outlook is unchanged: On 23 September 2026 Everpure guided fiscal-2028 revenue to $7.0 billion–$7.3 billion, growth of 39%–45%, and non-GAAP operating income to $1.7 billion–$1.9 billion. The bear case: good results are not lifting the group: On 30 October 2026 SanDisk fell 9% after beating estimates and raising guidance, Western Digital fell 8%, Seagate 7% and Micron 6%, per 24/7 Wall St. A strong Everpure print on 18 November 2026 faces the same reception.
Bull case
- Fiscal-2028 outlook is unchanged: On 23 September 2026 Everpure guided fiscal-2028 revenue to $7.0 billion–$7.3 billion, growth of 39%–45%, and non-GAAP operating income to $1.7 billion–$1.9 billion. No revision has been reported since.
- Peer storage demand is strong: Western Digital reported quarterly revenue of $4.38 billion on 22 October 2026, up 55.5% year on year, and guided to $5.0 billion–$5.2 billion against a $4.5 billion consensus, per MarketBeat. SanDisk's data center revenue rose 61% sequentially to $4.8 billion in the quarter it reported on 29 October 2026, per 24/7 Wall St.
- Contracted revenue keeps building: Remaining performance obligations were $4.1 billion, up 44%, and subscription annual recurring revenue was $2.1 billion, up 20%, in the 26 August 2026 second-quarter release.
- Shares rebounded off the low: The close rose from $93.44 on 5 November 2026 to $106.50 on 11 November 2026, with each close in between above the 5 November 2026 level.
- Most targets sit far above the price: Benzinga's consensus target was $144.94 on 26 October 2026, and Guggenheim's target is $215, raised on 12 October 2026.
Bear case
- Good results are not lifting the group: On 30 October 2026 SanDisk fell 9% after beating estimates and raising guidance, Western Digital fell 8%, Seagate 7% and Micron 6%, per 24/7 Wall St. A strong Everpure print on 18 November 2026 faces the same reception.
- Hardware peers fell with it on 5 November 2026: Dell fell 10.1%, Hewlett Packard Enterprise 8.5% and NetApp 6.4%, per Alphastreet, which called the move sector-wide. Everpure's drop was larger than any of them.
- Flash costs stay high into 2027: Intel chief executive Lip-Bu Tan said on 29 October 2026 that high memory prices will remain a challenge into 2027, per 24/7 Wall St. A Yahoo Finance analysis dated 28 September 2026 said flash component costs had risen six to eight times in about two quarters, which presses Everpure's product gross margin.
- Cash flow lags the growth story: Free cash flow was negative $238 million in the second quarter of fiscal 2027, and the GAAP operating margin was 5.3%, per the same Yahoo Finance analysis.
- Insiders sold near the high, and another sale is flagged: SEC Form 4 filings show co-founder John Colgrove selling 100,000 shares at an average $145.00 on 14 October 2026 under a Rule 10b5-1 plan, director Scott Dietzen selling 60,000 shares at an average $141.60 the same day, and Chief Executive Charles Giancarlo selling 70,000 shares at an average $153.73 on 12 October 2026. A director filed a Form 144 on 10 November 2026 to sell 50,000 shares, per company news.
Price setup
The shares closed at $111.77 on 4 November 2026 and $93.44 on 5 November 2026. They then closed at $96.75 on 6 November 2026, $102.84 on 9 November 2026, $101.98 on 10 November 2026 and $106.50 on 11 November 2026. The three-month change is a decline of 9.2%, measured from the $117.35 close on 13 August 2026.
The 52-week closing low is $56.99 on 30 March 2026. The 200-day average of $86.9 sits below the 5 November 2026 close, and the 50-day average of $120.6 sits above the last close. The 50-day average is the nearest overhead level the shares have not yet regained.
Catalysts ahead
- 18 November 2026: Third-quarter fiscal-2027 report and conference call, 2:00 p.m. Pacific. First quarterly test of the fiscal-2028 outlook: revenue against the $1.325–1.335 billion guide, product gross margin against 65%–70%, and free cash flow after a negative second quarter.
- 1 December 2026: Management presentation at the UBS conference. First public follow-up after the report; any change in tone on hyperscale timing or flash costs would show up here.
What would change the view
A daily close above $122.47, which would put the shares back over their 50-day moving average and show them leading the S&P 500. A third-quarter fiscal-2027 report that lifts fiscal-2027 revenue guidance above the $5.07 billion top of the current range would also show the shares leading.
What it trades with
Everpure trades with the storage, memory and data-infrastructure hardware group. It fell with Western Digital, SanDisk, Seagate and Micron on 30 October 2026, and with Dell, Hewlett Packard Enterprise and NetApp on 5 November 2026. Hyperscaler capital-spending commentary moves the whole group, since Everpure's fiscal-2028 range depends partly on hyperscale deliveries. The shares also respond to bond yields: growth shares sold off on 14 October 2026 after a 3.7% September inflation reading.
The evidence, claim by claim (8)
- Everpure scheduled its third-quarter fiscal-2027 results call for 18 November 2026 at 2:00 p.m. Pacific; the quarter ended 1 November 2026. Everpure press release, 28 October 2026 · as of
- Third-quarter fiscal-2027 guidance: revenue $1.325 billion–$1.335 billion and non-GAAP operating income $265 million–$275 million; fiscal-2027 revenue guide $5.03 billion–$5.07 billion. Everpure Q2 FY2027 prepared remarks · as of
- Everpure issued a preliminary fiscal-2028 outlook of $7.0 billion–$7.3 billion revenue (39%–45% growth) and $1.7 billion–$1.9 billion non-GAAP operating income. Everpure Financial Analyst Meeting release, via Investing.com · as of
- Second-quarter fiscal-2027 free cash flow was negative $238 million; remaining performance obligations were $4.1 billion, up 44%. Everpure Q2 FY2027 earnings release; Yahoo Finance analysis 28 September 2026 · as of
- Everpure shares fell 16.4% on 5 November 2026 to $93.44 in a technology selloff; Dell fell 10.1%, HPE 8.5% and NetApp 6.4%. GuruFocus 5 November 2026; Alphastreet · as of
- SanDisk fell 9% after beating estimates and raising guidance; Western Digital fell 8%, Seagate 7% and Micron 6%. 24/7 Wall St., 30 October 2026 · as of
- Colgrove sold 100,000 shares at an average $145.00 on 14 October 2026 under a Rule 10b5-1 plan; director Dietzen sold 60,000 shares at an average $141.60 the same day. SEC Form 4 filings, 16 October 2026 · as of
- UBS maintained its Sell rating on Everpure and raised its price target to $88. Company news headline, 12 November 2026 · as of
Sources
- Everpure (P) Shares Plunge Nearly 16% Amid Tech Sector Selloff on November 05, 2026 · gurufocus.com
- Everpure Plunges 14.5% Amid Sector-Wide Selling · news.alphastreet.com
- Everpure retreats 15% amid broad technology selloff (P:NYSE) · seekingalpha.com
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