Seagate Technology PLC (STX): Today's Featured Technology 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 Technology sector higher today making it today's featured technology winner. The sector as a whole closed the day up 1.4%. By the end of trading, Seagate Technology rose $1.60 (4.0%) to $41.23 on heavy volume. Throughout the day, 8,562,482 shares of Seagate Technology exchanged hands as compared to its average daily volume of 5,279,600 shares. The stock ranged in a price between $39.89-$41.52 after having opened the day at $40.00 as compared to the previous trading day's close of $39.63. Other companies within the Technology sector that increased today were: Radcom ( RDCM), up 53.8%, Deltathree ( DDDC), up 46.3%, Procera Networks ( PKT), up 27.1% and Blucora ( BCOR), up 21.1%.
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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 $13.3 billion and is part of the computer hardware industry. The company has a P/E ratio of 5.7, below the S&P 500 P/E ratio of 17.7. Shares are up 21.4% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Seagate Technology a buy, 3 analysts rate it a sell, and 15 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 revenue growth, solid stock price performance, notable return on equity, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Vocera Communications ( VCRA), down 37.3%, Lantronix ( LTRX), down 18.2%, Kingtone Wirelessinfo Solution ( KONE), down 17.2% and LinkedIn ( LNKD), down 12.9%.

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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