Seagate (STX) Dips More Than Broader Markets: What You Should Know

This story originally appeared on Zacks

Seagate (STX) closed the last trading day at $110.96, up 1.26% from the previous trading session. This move lagged the S&P 500’s daily loss of 0.41%. Elsewhere, the Dow Jones lost 0.01%, while tech-heavy Nasdaq added 0.13%.

– Zacks

Heading into the day, shares of the electronic storage maker are up 9.18% over the past month, outpacing the business services sector’s 12.79% loss and the S&P 500’s 2.36% gain in that time.

Investors are hoping for some strength from Seagate as it nears its next earnings release. In that report, analysts expect Seagate to report earnings of $2.38 per share. This represents an annual growth of 84.5%. Meanwhile, our latest consensus estimate calls for revenue of $3.11 billion, an increase of 18.43% over the prior year quarter.

Looking at the full year, our Zacks Consensus estimates that analysts expect earnings of $8.85 per share and revenue of $11.94 billion. These totals will indicate changes of +56.91% and +11.83%, respectively, from last year.

It’s also important to note recent changes in analyst estimates for Seagate. Recent reviews tend to reflect the latest near-term business trends. With this in mind, we can take the positive rating reviews as a sign of optimism about the company’s business outlook.

Research indicates that these discretionary revisions are directly related to the stock’s near-term price momentum. To take advantage of this, we have developed Zacks Rank, a proprietary model that takes these discretionary changes into account and provides an actionable ranking system.

Ranging from #1 (strong buy) to #5 (strong sell), the Zacks Rank has a track record of outperforming externally audited, with the #1 stock having achieved a +25% average annual return since 1988. More in a month Past, Zacks Consensus EPS estimate has held steady. Seagate currently has a Zacks rating of 3 (Hold).

Looking at the valuation, Seagate currently has a forward P/E ratio of 12.7. This is a discount compared to the industry’s forward P/E average of 20.98.

It’s also worth noting that STX currently has a PEG ratio of 10.5. This common metric is similar to the widely known price-earnings (P/E) ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Technology Services has, on average, a price-to-commission ratio of 1.61 based on yesterday’s closing prices.

The technology services industry is part of the business services sector. The industry currently has a Zacks Industry Rating of 192, placing it in the lowest 25% of all 250+ industries.

Zacks Industry Ranks are listed in order from best to worst in terms of the average Zacks rating of individual companies in each of these sectors. Our research shows that industries ranked 50% outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.

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