Shares of Everpure climbed nearly 9% over the past week after S&P Dow Jones Indices announced on Sept. 4 that the data-storage specialist — formerly known as Pure Storage, rebranded in February 2026 — will enter the S&P 500 before trading opens on Sept. 21. The stock, at $100.69, has nearly doubled from its 52-week low of $56.78, but the real question is whether the fundamentals can keep pace with the valuation.
• Index Funds Will Be Forced Buyers — That's Real Demand, Not Hype
Index inclusion creates a near-certain wave of forced buying: every fund benchmarked to the S&P 500 must hold each constituent in proportion to its index weight.
Over the past decade, the average stock added to the index returned 16% in the following year. With a market cap around $33.7 billion and 333.2 million shares outstanding , even a modest wave of passive buying could move the needle on a stock with average daily volume of just 3.5 million shares.
• A 38% Revenue Jump Earned the Ticket In The S&P's profitability screen had previously kept the company out — in December 2025, the index committee bypassed the stock, citing a need for more consistent GAAP profitability. What changed: Q2 fiscal 2027 delivered revenue of $1.19 billion, with operating profit growth significantly outpacing sales.
Product revenue surged 54% year-over-year , driven by hyperscale AI infrastructure deals and price increases on flash memory components.
• The AI Story Is Real, but Component Costs Are a Headwind
CFO Tarek Robbiati called Q2 "outstanding" but acknowledged "historic industry price increases in the first half of FY'27."
The company raised prices due to a dramatic rise in component costs, which may impact product gross margins. Everpure's pitch — making enterprise data ready for AI workloads — is resonating, but margins could compress if NAND flash inflation persists.
• A P/E of 138x Leaves No Room for Stumbles
Everpure trades at a price-to-earnings ratio of 138 — meaning investors pay $138 for every $1 of current earnings. Analysts' average 12-month target of $130.53 implies about 30% upside , but that optimism hinges on continued hyperscale deal flow and margin stability. Revenue from hyperscalers is expected to be uneven and concentrated in the second half of the fiscal year , a lumpiness that could rattle shareholders quarter to quarter.
Bottom line: S&P 500 membership is a stamp of institutional legitimacy, and the mechanical buying it triggers is a near-term tailwind. But at 138 times earnings, every future quarter must be "outstanding" — or the stock's premium evaporates.