Seagate (STX) Gains As Market Dips: What You Should Know
Seagate (STX) closed at $90.32 in the latest trading session, marking a +0.92% move from the prior day.
In the latest trading session, Seagate (STX) closed at $90.32, marking a +0.92% move from the previous day. The stock outpaced the S&P 500's daily loss of 0.03%.
Heading into today, shares of the electronic storage maker had lost 1.54% over the past month, lagging the Business Services sector's gain of 1.35% and the S&P 500's gain of 3.59% in that time.
STX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.21, up 137.63% from the prior-year quarter. Our most recent consensus estimate is calling for quarterly revenue of $3.1 billion, up 34.11% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.26 per share and revenue of $11.82 billion. These totals would mark changes of +46.45% and +10.69%, respectively, from last year.
Investors should also note any recent changes to analyst estimates for STX. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. STX is currently a Zacks Rank #3 (Hold).
Looking at its valuation, STX is holding a Forward P/E ratio of 10.84. This valuation marks a discount compared to its industry's average Forward P/E of 31.4.
Investors should also note that STX has a PEG ratio of 8.96 right now. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Technology Services was holding an average PEG ratio of 2.34 at yesterday's closing price.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 219, which puts it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
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Seagate Technology Holdings PLC (STX): Free Stock Analysis Report
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