PENG

Penguin Solutions, Inc. (PENG) has gained 40.1% over the past four weeks and Wall Street analysts predict an additional 26.7% upside based on a mean price target of $85.63. The stock holds a Zacks Rank #1 (Strong Buy) rating, supported by strong earnings estimate revisions with a 41.1% increase in consensus estimates over the last 30 days. However, the article cautions that price targets alone should not be the sole basis for investment decisions.

Penguin Solutions, Inc. (PENG) has received a Zacks Rank #1 (Strong Buy) rating due to strong upward earnings estimate revisions from analysts. The company's consensus estimates for the current quarter increased 39.68% and full-year estimates rose 41.12% over the past month, with expected earnings of $1.01 per share for the current quarter (+106.1% YoY) and $4.58 for the full year (+59.6% YoY). The stock has already gained 49.1% over the past four weeks.

Penguin Solutions (PENG) raised its fiscal 2027 guidance to approximately 40% sales growth with non-GAAP EPS of $4.45, driven by strong AI infrastructure bookings and memory demand. The company added six new AI infrastructure customers, with Advanced Computing growing 99% year-over-year.

Memory backlog now extends at least four quarters as CXL demand strengthens. Management emphasized its full-stack AI factory positioning and disciplined operating leverage as key differentiators.