Seagate Technology PLC (STX): Today's Featured Technology Laggard

Nov 7, 2012 5:01 PM EST

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.

Seagate Technology ( STX) pushed the Technology sector lower today making it today's featured Technology laggard. The sector as a whole closed the day down 2.4%. By the end of trading, Seagate Technology fell 97 cents (-3.2%) to $29.32 on average volume. Throughout the day, 9.8 million shares of Seagate Technology exchanged hands as compared to its average daily volume of 9.2 million shares. The stock ranged in price between $29.31-$30.19 after having opened the day at $29.82 as compared to the previous trading day's close of $30.29. Other companies within the Technology sector that declined today were: Plexus ( PLXS), down 26.6%, THQ ( THQI), down 22.7%, STEC ( STEC), down 19.4%, and Rubicon Technology ( RBCN), down 19.2%.

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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 $10.89 billion and is part of the computer hardware industry. The company has a P/E ratio of 3.8, below the S&P 500 P/E ratio of 17.7. Shares are up 75.9% year to date as of the close of trading on Tuesday. Currently there are four analysts that rate Seagate Technology a buy, one analyst rates it a sell, and 14 rate it a hold.

TheStreet Ratings rates Seagate Technology as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, notable return on equity, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

You can view the full Seagate Technology Ratings Report.

On the positive front, VirnetX ( VHC), up 27.8%, Procera Networks ( PKT), up 14.5%, Tangoe ( TNGO), up 12.7%, and China TechFaith Wireless Comm Tech ( CNTF), up 11.3%, were all gainers within the technology sector with Ciena Corporation ( CIEN) being today's featured technology sector leader.

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For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the technology sector could consider Technology Select Sector SPDR ( XLK) while those bearish on the technology sector could consider ProShares Ultra Short Technology ( REW).