Seagate (STX) closed at $44.60 in the latest trading session, marking a -1.61% move from the prior day. This change was narrower than the S&P 500's daily loss of 9.51%. Meanwhile, the Dow lost 9.99%, and the Nasdaq, a tech-heavy index, lost 9.44%.
Coming into today, shares of the electronic storage maker had lost 19.37% in the past month. In that same time, the Computer and Technology sector lost 17.57%, while the S&P 500 lost 18.22%.
Wall Street will be looking for positivity from STX as it approaches its next earnings report date. In that report, analysts expect STX to post earnings of $1.35 per share. This would mark year-over-year growth of 62.65%. Meanwhile, our latest consensus estimate is calling for revenue of $2.65 billion, up 14.48% from the prior-year quarter.
STX's full-year Zacks Consensus Estimates are calling for earnings of $5.06 per share and revenue of $10.57 billion. These results would represent year-over-year changes of +4.98% and +1.76%, respectively.
Investors might also notice recent changes to analyst estimates for STX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. STX is holding a Zacks Rank of #2 (Buy) right now.
Looking at its valuation, STX is holding a Forward P/E ratio of 8.95. Its industry sports an average Forward P/E of 11.75, so we one might conclude that STX is trading at a discount comparatively.
Meanwhile, STX's PEG ratio is currently 7.4. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. STX's industry had an average PEG ratio of 3.09 as of yesterday's close.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 19, putting it in the top 8% of all 250+ industries.
The Zacks Industry Rank includes is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. 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.
Seagate Technology PLC (NASDAQ:STX): Free Stock Analysis Report
Original post
Zacks Investment Research