Trade-Ideas: Seagate Technology (STX) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Seagate Technology ( STX) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Seagate Technology as such a stock due to the following factors:

  • STX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $160.9 million.
  • STX has traded 2.1 million shares today.
  • STX is trading at a new lifetime high.

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More details on STX:

Seagate Technology Public Limited Company designs, manufactures, and sells electronic data storage products. The stock currently has a dividend yield of 3.6%. STX has a PE ratio of 8.7. Currently there are 4 analysts that rate Seagate Technology a buy, 3 analysts rate it a sell, and 14 rate it a hold.

The average volume for Seagate Technology has been 3.5 million shares per day over the past 30 days. Seagate Technology has a market cap of $14.9 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 3.14 and a short float of 5.4% with 5.01 days to cover. Shares are up 37.4% year to date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Seagate Technology as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, STX's share price has jumped by 63.08%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, STX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • STX's debt-to-equity ratio of 0.79 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that STX's debt-to-equity ratio is mixed in its results, the company's quick ratio of 1.64 is high and demonstrates strong liquidity.
  • SEAGATE TECHNOLOGY PLC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, SEAGATE TECHNOLOGY PLC reported lower earnings of $4.79 versus $6.45 in the prior year. This year, the market expects an improvement in earnings ($5.42 versus $4.79).
  • STX, with its decline in revenue, underperformed when compared the industry average of 0.7%. Since the same quarter one year prior, revenues fell by 23.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Computers & Peripherals industry and the overall market, SEAGATE TECHNOLOGY PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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