Seagate Technology PLC Stock Buy Recommendation Reiterated (STX)

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

NEW YORK (TheStreet) -- Seagate Technology (Nasdaq:STX) has been reiterated by TheStreet Ratings as a buy with a ratings score of B . The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, notable return on equity, good cash flow from operations and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

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Highlights from the ratings report include:

• STX's revenue growth has slightly outpaced the industry average of 27.6%. Since the same quarter one year prior, revenues rose by 32.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
• Powered by its strong earnings growth of 343.75% and other important driving factors, this stock has surged by 81.07% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, STX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
• The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, SEAGATE TECHNOLOGY PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Computers & Peripherals industry. The net income increased by 315.7% when compared to the same quarter one year prior, rising from $140.00 million to $582.00 million.
• Net operating cash flow has significantly increased by 607.50% to $1,132.00 million when compared to the same quarter last year. In addition, SEAGATE TECHNOLOGY PLC has also vastly surpassed the industry average cash flow growth rate of -11.72%.

Seagate Technology Public Limited Company designs, manufactures, markets, and sells hard disk drives for enterprise storage, client compute, and client non-compute market applications worldwide. Seagate Technology has a market cap of $13.01 billion and is part of the technology sector and computer hardware industry. The company has a P/E ratio of 4.5, below the S&P 500 P/E ratio of 17.7. Shares are up 12.8% year to date as of the close of trading on Wednesday.

You can view the full Seagate Technology Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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