This story originally appeared on Zacks
Seagate (STX) closed at $82.95 in the latest trading session, marking a -0.94% move from the prior day. This change was narrower than the S&P 500’s daily loss of 1.7%.
Prior to today’s trading, shares of the electronic storage maker had lost 6.37% over the past month. This has lagged the Business Services sector’s gain of 0.77% and the S&P 500’s loss of 0.27% in that time.
STX will be looking to display strength as it nears its next earnings release. In that report, analysts expect STX to post earnings of $2.21 per share. This would mark year-over-year growth of 137.63%. Meanwhile, our latest consensus estimate is calling for revenue of $3.1 billion, up 34.11% from the prior-year quarter.
STX’s full-year Zacks Consensus Estimates are calling for earnings of $8.26 per share and revenue of $11.82 billion. These results would represent year-over-year changes of +46.45% and +10.69%, respectively.
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. As such, positive estimate revisions reflect analyst optimism about the company’s business and profitability.
Our research shows that these estimate changes are directly correlated with near-term stock prices. 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.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. STX is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note STX’s current valuation metrics, including its Forward P/E ratio of 10.14. Its industry sports an average Forward P/E of 29.76, so we one might conclude that STX is trading at a discount comparatively.
We can also see that STX currently has a PEG ratio of 8.38. 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. Technology Services stocks are, on average, holding a PEG ratio of 2.26 based on yesterday’s closing prices.
The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 226, which puts it in the bottom 12% 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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Seagate Technology Holdings PLC (STX): Free Stock Analysis Report
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