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

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 0.3%. By the end of trading, Seagate Technology fell $3.50 (-9.4%) to $33.91 on heavy volume. Throughout the day, 16.6 million shares of Seagate Technology exchanged hands as compared to its average daily volume of nine million shares. The stock ranged in price between $33.60-$35.15 after having opened the day at $35.14 as compared to the previous trading day's close of $37.41. Other companies within the Technology sector that declined today were: Powerwave Technologies ( PWAV), down 25%, Sanmina ( SANM), down 21.7%, VMWare ( VMW), down 21.5%, and Hutchinson Technology ( HTCH), down 16.1%.
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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 $14.06 billion and is part of the computer hardware industry. The company has a P/E ratio of 4.9, below the S&P 500 P/E ratio of 17.7. Shares are up 22.5% year to date as of the close of trading on Monday. Currently there are five analysts that rate Seagate Technology a buy, two analysts rate it a sell, and 13 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, 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.

On the positive front, ModusLink Global Solutions ( MLNK), up 40.6%, XRS ( XRSC), up 20.3%, Sierra Wireless ( SWIR), up 18.4%, and Advanced Photonix ( API), up 16.3%, were all gainers within the technology sector with CenturyLink ( CTL) being today's featured technology sector leader.

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).

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