Trade-Ideas: Seagate Technology (STX) Is Today's Post-Market Leader 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 post-market leader 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 $134.3 million.
  • STX is up 2.3% today from today's close.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in STX with the Ticky from Trade-Ideas. See the FREE profile for STX NOW at Trade-Ideas

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 3.3%. STX has a PE ratio of 11.6. Currently there are 8 analysts that rate Seagate Technology a buy, 1 analyst rates it a sell, and 9 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 $17.7 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 3.13 and a short float of 5.2% with 6.69 days to cover. Shares are down 6.1% 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, good cash flow from operations 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 47.94%, 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.
  • Net operating cash flow has slightly increased to $856.00 million or 1.42% when compared to the same quarter last year. Despite an increase in cash flow, SEAGATE TECHNOLOGY PLC's average is still marginally south of the industry average growth rate of 7.56%.
  • SEAGATE TECHNOLOGY PLC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. 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 ($5.11 versus $4.79).
  • STX, with its decline in revenue, slightly underperformed the industry average of 4.1%. Since the same quarter one year prior, revenues slightly dropped by 3.8%. The declining revenue appears to have seeped down to the company's 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.
null

If you liked this article you might like

Why Apple Is Increasingly Investing in Its Suppliers, Including Possibly Toshiba

Western Digital Stock to $100 on Toshiba Deal -- Jim Cramer Explains Why

Western Digital and Toshiba Both Have Good Reasons to Bury the Hatchet Quickly

Why You Keep Cash on Hand; No Downside Conviction -- Jim Cramer's Top Thoughts

How Much Cash Do You Have on You?: Cramer's 'Mad Money' Recap (Monday 8/14/17)