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Seagate (STX) closed the most recent trading day at $83.10, moving -1.31% from the previous trading session. This move lagged the S&P 500’s daily gain of 0.16%.
Prior to today’s trading, shares of the electronic storage maker had lost 3.87% over the past month. This has lagged the Business Services sector’s loss of 2.84% and the S&P 500’s loss of 3.32% in that time.
STX will be looking to display strength as it nears its next earnings release. The company is expected to report EPS of $2.21, up 137.63% from the prior-year quarter. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.1 billion, up 34.11% from the year-ago period.
Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $8.26 per share and revenue of $11.82 billion. These totals would mark changes of +46.45% and +10.69%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for STX. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. STX is currently sporting a Zacks Rank of #3 (Hold).
In terms of valuation, STX is currently trading at a Forward P/E ratio of 10.2. This represents a discount compared to its industry’s average Forward P/E of 26.85.
We can also see that STX currently has a PEG ratio of 8.43. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. The Technology Services industry currently had an average PEG ratio of 2.05 as of yesterday’s close.
The Technology Services industry is part of the Business Services sector. This group has a Zacks Industry Rank of 214, putting it in the bottom 16% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks. Com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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Seagate Technology Holdings PLC (STX): Free Stock Analysis Report
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