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.

Trade-Ideas LLC identified Seagate Technology ( STX) as a pre-market laggard 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 $180.7 million.
  • STX traded 137,424 shares today in the pre-market hours as of 9:11 AM.
  • STX is down 3.5% today from yesterday's close.

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More details on STX:

Seagate Technology Public Limited Company designs, manufactures, and sells electronic data storage products in the Asia Pacific, the Americas, and EMEA countries. The stock currently has a dividend yield of 3.9%. STX has a PE ratio of 9.2. Currently there are 9 analysts that rate Seagate Technology a buy, 1 analyst rates it a sell, and 7 rate it a hold.

The average volume for Seagate Technology has been 3.8 million shares per day over the past 30 days. Seagate Technology has a market cap of $18.3 billion and is part of the technology sector and computer hardware industry. The stock has a beta of 2.24 and a short float of 7.5% with 7.23 days to cover. Shares are down 14.8% year-to-date as of the close of trading on Wednesday.

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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 compelling growth in net income, revenue growth, good cash flow from operations, impressive record of earnings per share growth and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Computers & Peripherals industry. The net income increased by 118.0% when compared to the same quarter one year prior, rising from $428.00 million to $933.00 million.
  • STX's revenue growth trails the industry average of 31.9%. Since the same quarter one year prior, revenues slightly increased by 4.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has significantly increased by 68.57% to $1,443.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 51.80%.
  • SEAGATE TECHNOLOGY PLC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SEAGATE TECHNOLOGY PLC reported lower earnings of $4.52 versus $4.79 in the prior year. This year, the market expects an improvement in earnings ($4.83 versus $4.52).
  • 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.

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