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Seagate Technology Holdings plc (STX), with a market cap of $18.7 billion, engages in the provision of data storage technology and infrastructure solutions in the United States and internationally. Founded in 1978, the Singapore-based company offers mass capacity storage products including hard disk drives (HDDs) and solid state drives (SSDs).
Companies worth $10 billion or more are generally described as "large-cap stocks," STX fits this bill perfectly. As one of the top data storage companies worldwide, STX benefits from an increasing demand for robust storage solutions caused by rising data creation and sharing.
However, the company has fallen 23% from its 52-week high of $115.32, recorded on Oct. 15 last year. STX stock has surged marginally over the past three months, outperforming the Technology Select Sector SPDR Fund’s (XLK) 9.5% decline during the same time frame.
STX has declined 16.7% over the past six months and marginally over the past 52 weeks. In contrast, XLK has fallen 2.7% over the past six months and surged 3.7% over the past 52 weeks, outperforming the stock.
STX has been trading below its 200-day and 50-day moving average since early March, indicating a recent downtrend.
STX shares surged 3.7% following its Q2 earnings release on Jan. 21. The company reported a 49.5% increase in its revenue, which amounted to $2.3 billion. The company’s EPS amounted to $1.82, surpassing the Wall Street estimates by 9%. The company projects Q3 revenue of $2.1 billion and EPS of $1.70 while also advancing its technology roadmap to address the growing AI-driven demands of its customers.
Its rival, Pure Storage, Inc. (PSTG) has shown better performance over the past year, with its shares surging 6.2% over the past six months and 1.2% over the past 52 weeks.
Analysts remain moderately optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from 19 analysts in coverage. Its mean price target of $117.61 represents an upside of 32.5% from the current market prices.
