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 0.7%. By the end of trading, Seagate Technology rose $0.98 (2.2%) to $44.99 on average volume. Throughout the day, 4,187,672 shares of Seagate Technology exchanged hands as compared to its average daily volume of 5,153,700 shares. The stock ranged in a price between $44.04-$45.05 after having opened the day at $44.18 as compared to the previous trading day's close of $44.01. Other companies within the Computer Hardware industry that increased today were: XRS ( XRSC), up 7.9%, Radisys Corporation ( RSYS), up 6.5%, Universal Display Corporation ( PANL), up 6.3% and China TechFaith Wireless Comm Tech ( CNTF), up 5.8%.
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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 $15.7 billion and is part of the technology sector. The company has a P/E ratio of 7.1, below the S&P 500 P/E ratio of 17.7. Shares are up 44.7% year to date as of the close of trading on Monday. Currently there are 5 analysts that rate Seagate Technology a buy, 3 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 solid stock price performance, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

On the negative front, Overland Storage ( OVRL), down 5.0%, Dataram Corporation ( DRAM), down 4.0%, Palo Alto Networks ( PANW), down 3.6% and Gigamon ( GIMO), down 3.1% , were all laggards within the computer hardware industry with Brocade Communications Systems ( BRCD) 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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