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Seagate (STX) Moves 11.7% Higher: Will This Strength Last?
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Seagate (STX - Free Report) shares rallied 11.7% in the last trading session to close at $74.29. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 23.5% loss over the past four weeks.
The increase in share price can attributed to President Trump’s announcement of a 90-day pause on reciprocal tariffs, barring China. This led to increases for most stocks including Seagate and subsequent skyrocketing indices.
Seagate is well-poised to gain from expanding momentum in mass capacity, which is driving the lion’s share of the company’s revenues. Strengthening nearline demand from global cloud customers and improvement in the enterprise & OEM markets are key driving forces. Steady growth in nearline revenues is aiding the top line. During the fiscal second quarter, Seagate ramped up HAMR-based Mozaic products for its lead cloud customer and started sampling Mozaic drives up to 36TB capacity products. Price adjustment, cost discipline and a favorable product mix shift to mass-capacity products are cushioning its margins.
This electronic storage maker is expected to post quarterly earnings of $1.75 per share in its upcoming report, which represents a year-over-year change of +430.3%. Revenues are expected to be $2.13 billion, up 28.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Seagate, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on STX going forward to see if this recent jump can turn into more strength down the road.
Seagate belongs to the Zacks Computer - Integrated Systems industry. Another stock from the same industry, Agilysys (AGYS - Free Report) , closed the last trading session 10.9% higher at $72.91. Over the past month, AGYS has returned -12.7%.
Agilysys' consensus EPS estimate for the upcoming report has changed +4.8% over the past month to $0.26. Compared to the company's year-ago EPS, this represents a change of -18.8%. Agilysys currently boasts a Zacks Rank of #4 (Sell).
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Seagate (STX) Moves 11.7% Higher: Will This Strength Last?
Seagate (STX - Free Report) shares rallied 11.7% in the last trading session to close at $74.29. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 23.5% loss over the past four weeks.
The increase in share price can attributed to President Trump’s announcement of a 90-day pause on reciprocal tariffs, barring China. This led to increases for most stocks including Seagate and subsequent skyrocketing indices.
Seagate is well-poised to gain from expanding momentum in mass capacity, which is driving the lion’s share of the company’s revenues. Strengthening nearline demand from global cloud customers and improvement in the enterprise & OEM markets are key driving forces. Steady growth in nearline revenues is aiding the top line. During the fiscal second quarter, Seagate ramped up HAMR-based Mozaic products for its lead cloud customer and started sampling Mozaic drives up to 36TB capacity products. Price adjustment, cost discipline and a favorable product mix shift to mass-capacity products are cushioning its margins.
This electronic storage maker is expected to post quarterly earnings of $1.75 per share in its upcoming report, which represents a year-over-year change of +430.3%. Revenues are expected to be $2.13 billion, up 28.7% from the year-ago quarter.
Earnings and revenue growth expectations certainly give a good sense of the potential strength in a stock, but empirical research shows that trends in earnings estimate revisions are strongly correlated with near-term stock price movements.
For Seagate, the consensus EPS estimate for the quarter has remained unchanged over the last 30 days. And a stock's price usually doesn't keep moving higher in the absence of any trend in earnings estimate revisions. So, make sure to keep an eye on STX going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Seagate belongs to the Zacks Computer - Integrated Systems industry. Another stock from the same industry, Agilysys (AGYS - Free Report) , closed the last trading session 10.9% higher at $72.91. Over the past month, AGYS has returned -12.7%.
Agilysys' consensus EPS estimate for the upcoming report has changed +4.8% over the past month to $0.26. Compared to the company's year-ago EPS, this represents a change of -18.8%. Agilysys currently boasts a Zacks Rank of #4 (Sell).