Shares of data storage technology provider Seagate (STX) have been gaining significantly as its HDD business continues to make progress in the enterprise, cloud, and data center markets. Moreover, the rising need to move hundreds of terabytes of data to the cloud should position the company to see substantial growth in user base in its Lyve Data Transfer Services in the coming months. So, we think the stock has plenty of upside left. Read on.Based in Dublin, Ireland, Seagate Technology Holdings plc (STX) is a data storage technology and cloud services provider in the United States and internationally. A solid portfolio of core HDD (hard disk drives) amid the increasing demand for mass capacity storage has bolstered its growth in the fiscal third quarter, which ended April 2, 2021. The stock rallied 74.1% over the past year and 42.9% so far this year.
STX has enhanced its profitability by strengthening its HDD business operations to cater to the growing needs of the data center, cloud, and enterprise customers. Furthermore, the company has presented a strong revenue outlook of $2.85 billion and a non-GAAP EPS outlook of $1.60 for the fiscal fourth quarter of 2021. Given STX’s low valuation and strong growth outlook, we believe it is well-positioned to soar in the near term.
Here is what we think could shape STX’s performance in the near term: