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Seagate Technology Holdings plc (STX), headquartered in Dublin, Ireland, is a global leader in data storage solutions. With a diverse portfolio that includes HDD, SSD, and cloud storage products, the company has established itself as a key player in the industry. Seagate is currently valued at $21.7 billion by market cap.
Shares of this global storage solutions leader have considerably outperformed the broader market over the past year. STX has gained 59.5% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 27.8%. In 2024, STX stock is up 22.3%, surpassing SPX’s 17.8% rise on a YTD basis.
Zooming in further, STX’s outperformance is evident when compared to Vanguard Information Technology Index Fund ETF (VGT). The exchange-traded fund has gained about 37% over the past year. Moreover, STX’s gains on a YTD basis outshine the ETF’s 20.3% returns over the same time frame.
On Jul. 23, Seagate Technology released its Q4 earnings, and the stock climbed 4% in the subsequent trading session. It reported fourth-quarter revenue of $1.89 billion, exceeding analysts' expectations of $1.87 billion, indicating that the decline in disk drive sales is coming to an end. The company reported non-GAAP EPS of $1.05, substantially surpassing the estimated EPS of $0.56.
For the current fiscal year, ending in June 2025, analysts expect STX’s EPS to grow 873.9% to $6.72 on a diluted basis. The company’s earnings surprise history is impressive. It beat or met the consensus estimate in each of the last four quarters.
Among the 20 analysts covering STX stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” seven “Holds,” and two “Strong Sells.”
This configuration has been consistent over the past months.
On July 22, Wedbush Securities analyst Matt Bryson reiterated his “Outperform” rating on Seagate Technology and raised the price target from $100 to $130.
The mean price target of $118.44 represents a 13.4% premium to STX’s current price levels. The Street-high price target of $142 suggests an upside potential of 36%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
