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With a market cap of $21.1 billion, Seagate Technology Holdings plc (STX) is a leading global provider of data storage solutions, specializing in hard disk drives (HDDs), solid state drives (SSDs), and hybrid storage systems. The Singapore-based company serves diverse markets with innovative products for enterprise, cloud, consumer, and gaming applications.
Shares of the electronic storage maker have slightly underperformed the broader market over the past 52 weeks. STX stock has surged 30.1% over this time frame, while the broader S&P 500 Index ($SPX) has rallied 31%. In 2024, shares of STX are up 16.7%, compared to SPX's 25.2% gain on a YTD basis.
However, Seagate Technology has outpaced the Technology Select Sector SPDR Fund's (XLK) 26.4% return over the past 52 weeks. But, the stock lagged behind XLK's 21.4% YTD gain.
Despite reporting better-than-expected Q1 adjusted EPS of $1.58 and revenue of $2.2 billion on Oct. 22, shares of STX tumbled 8.1% the next day due to Q2 guidance missing analyst expectations, with an EPS of $1.85 and revenue of $2.3 billion. Investors reacted negatively as the weaker outlook overshadowed strong Q1 results, raising concerns about near-term demand challenges, particularly in cloud and enterprise markets. Additionally, profit-taking after a strong rally and cautious market sentiment toward the broader tech sector exacerbated the decline.
For the current fiscal year, ending in June 2025, analysts expect STX's EPS to grow significantly year-over-year to $7.18. The company's earnings surprise history is promising. It beat the consensus estimates in the last four quarters.
Among the 20 analysts covering the stock, the consensus rating is a “Moderate Buy.” That’s based on 10 “Strong Buy” ratings, one “Moderate Buy,” seven “Holds,” and two “Strong Sells.”
On Oct. 23, Wedbush analyst Matt Bryson reaffirmed a “Buy” rating for Seagate Technology, setting a price target of $150 - the Street-high price target. This implies a potential upside of 50.6%. As of writing, STX is trading below the mean price target of $122.17.
