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Seagate (STX) Outpaces Stock Market Gains: What You Should Know

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Seagate (STX - Free Report) closed the most recent trading day at $89.62, moving +1.27% from the previous trading session. This move outpaced the S&P 500's daily gain of 0.12%.

Prior to today's trading, shares of the electronic storage maker had lost 5.79% over the past month. This has was narrower than the Business Services sector's loss of 15.07% and lagged the S&P 500's gain of 3% in that time.

STX will be looking to display strength as it nears its next earnings release, which is expected to be July 21, 2021. The company is expected to report EPS of $1.81, up 50.83% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $2.94 billion, up 16.79% from the prior-year quarter.

Investors might also notice recent changes to analyst estimates for STX. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for 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. Within the past 30 days, our consensus EPS projection remained stagnant. STX is currently sporting a Zacks Rank of #1 (Strong Buy).

Valuation is also important, so investors should note that STX has a Forward P/E ratio of 11.64 right now. Its industry sports an average Forward P/E of 31.81, so we one might conclude that STX is trading at a discount comparatively.

Also, we should mention that STX has a PEG ratio of 9.62. 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. STX's industry had an average PEG ratio of 2.71 as of yesterday's close.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 194, which puts it in the bottom 24% 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.

Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.


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