Seagate Technology PLC (STX): Today's Featured Computer Hardware Winner

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 Computer Hardware industry higher today making it today's featured computer hardware winner. The industry as a whole closed the day up 0.6%. By the end of trading, Seagate Technology rose 66 cents (1.9%) to $34.62 on light volume. Throughout the day, 5.9 million shares of Seagate Technology exchanged hands as compared to its average daily volume of 9.2 million shares. The stock ranged in a price between $33.72-$34.70 after having opened the day at $33.80 as compared to the previous trading day's close of $33.96. Other companies within the Computer Hardware industry that increased today were: iGo ( IGOI), up 31.3%, Universal Display Corporation ( PANL), up 9.3%, Identive Group ( INVE), up 5.5%, and Silicom ( SILC), up 4.4%.
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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 $12.13 billion and is part of the technology sector. The company has a P/E ratio of 4.4, below the S&P 500 P/E ratio of 17.7. Shares are up 11.1% year to date as of the close of trading on Tuesday. Currently there are three analysts that rate Seagate Technology a buy, three analysts rate 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, 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 negative front, Mad Catz Interactive ( MCZ), down 20.7%, Aruba Networks ( ARUN), down 4.8%, Concurrent Computer Corporation ( CCUR), down 3.2%, and Dataram Corporation ( DRAM), down 3%, were all laggards within the computer hardware industry with Teradata Corporation ( TDC) being today's computer hardware industry laggard.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the computer hardware industry could consider iShares Dow Jones US Technology ( IYW) while those bearish on the computer hardware industry could consider ProShares Ultra Short Semiconductor ( SSG).

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