The Smart Money Agrees That Seagate Stock Still Has Room to Surge Higher

• Seagate Technology (STX) is highlighted for exceptional price momentum and strong technical buy signals, with a 744% gain over the past year.
• STX maintains a 100% “Buy” technical opinion.
• Analysts project robust fundamentals including over 80% earnings growth this year.
• Most Wall Street analysts rate STX a “Strong Buy.” This bull rating is supported by low short interest and positive sentiment.

Today’s Featured Stock

Valued at $240 billion, Seagate Technology (STX) is one of the largest manufacturers of hard disk drives (HDDs) in the U.S. 

HDDs are used as the primary medium for storing electronic information in systems ranging from desktop computers and consumer electronics to data centers. Seagate also develops other electronic data storage products such as solid-state drives (SSDs) and solid-state hybrid drives (SSHDs). The company has an industry-leading, vertically integrated operation with internal control over the majority of its key component suppliers. 

What I’m Watching

I found today’s Chart of the Day by using Barchart’s powerful screening functions to sort for stocks with the highest technical buy signals; superior current momentum in both strength and direction, a Weighted Alpha above 50+ and a 60-month beta above 1.5. I then used Barchart’s Flipcharts feature to review the charts for consistent price appreciation. STX checks those boxes. The Trend Seeker issued a new “Buy” signal on June 12. Since then, the stock has gained 18.28%.

Barchart’s Technical Indicators for Seagate Technology

Editor’s Note: The technical indicators below are updated live during the session every 20 minutes and can therefore change each day as the market fluctuates. The indicator numbers shown below therefore may not match what you see live on the Barchart.com website when you read this report. These technical indicators form the Barchart Opinion on a particular stock.

Seagate scored an all-time high of $1,145 on June 18.

• Seagate has a Weighted Alpha of +724.57.
• STX has a 100% “Buy” opinion from Barchart.
• The stock has gained 744.33% over the past 52 weeks.
• Seagate has its Trend Seeker “Buy” signal intact.
• The stock recently traded at $1,075.48 with a 50-day moving average of $772.28.
• STX has made 9 new highs and gained 36.05% over the past month.
• Relative Strength Index (RSI) is at 74.45.
• There’s a technical support level around $1,034.17.

Don’t Forget the Fundamentals

• $240 billion market capitalization.
• 91.35x trailing price-earnings ratio.
• 0.27% dividend yield.
• Analysts project revenue to grow 32.46% this year and another 38.11% next year.
• Earnings are estimated to increase 83.81% this year and an additional 81.94% next year.

Analyst and Investor Sentiment on Seagate Technology

• The Wall Street analysts followed by Barchart give the stock 21 “Strong Buy,” 1 “Moderate Buy” and 3 “Hold” opinions with price targets between $545 and $1,150.
• Value Line rates the stock “Above Average” with price targets between $905 and $1,355.
• CFRA’s MarketScope rates the stock a “Buy.”
• Morningstar thinks the stock is 57% overvalued with a price target of $680. mainly due to its high P/E ratio.
• 72,460 investors are following the stock on Seeking Alpha, which rates it a “Hold.”
• Short interest is 4.04% of the float with 2.61 days to cover the float.

The Bottom Line on Seagate Technology

Although Morningstar thinks the stock is overvalued, most Wall Street analysts still rate the stock a “Strong Buy” and the low short interest of 4.04% of the float implies the smart money agrees.

Additional disclosure: The Barchart Chart of the Day highlights stocks that are experiencing exceptional current price appreciation. They are not intended to be buy recommendations as these stocks are extremely volatile and speculative. Should you decide to add one of these stocks to your investment portfolio it is highly suggested you follow a predetermined diversification and moving stop loss discipline that is consistent with your personal investment risk tolerance.