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Valued at a market cap of $21.5 billion, Seagate Technology Holdings plc (STX) is a global leader in data storage solutions, offering hard disk drives (HDDs), solid-state drives (SSDs), and hybrid storage products for enterprise, cloud, and consumer applications. Based in Singapore, the company serves customers worldwide through its vertically integrated supply chain.
Shares of the electronic storage maker have underperformed the broader market over the past 52 weeks. STX stock has increased 16.9% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 22.3%. However, shares of STX are up 17.6% on a YTD basis, outpacing SPX's nearly 4% gain.
In addition, STX has slightly lagged behind the Technology Select Sector SPDR Fund's (XLK) 17.1% return over the past 52 weeks.
Shares of Seagate Technology climbed 6.8% following its Q2 earnings release on Jan. 21, including adjusted EPS of $2.03, which beat estimates. The company reported a 49.5% year-over-year revenue increase to $2.3 billion, driven by surging demand for high-capacity nearline HDDs, which nearly doubled in revenue and aligned with a 50% growth in cloud capital investments. Additionally, gross margin expansion to 35.5% and disciplined cost management reassured investors of Seagate's improving profitability and operational efficiency.
For the fiscal year ending in June 2025, analysts expect STX's EPS to grow significantly year-over-year to $6.82. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 12 “Strong Buy” ratings, one “Moderate Buy,” five “Holds,” and two “Strong Sells.”
This configuration is more bullish than three months ago, with 10 “Strong Buy” ratings on the stock.
On Feb. 10, Evercore ISI analyst Amit Daryanani maintained a Buy rating on Seagate Technology and set a price target of $135.
As of writing, STX is trading below the mean price target of $122.11. The Street-high price target of $160 implies a potential upside of 57.7% from the current price levels.
