Group 1 - Analysts project Seagate (STX) will announce quarterly earnings of $2.46 per share, a 134.3% increase year over year [1] - Revenues are expected to reach $2.41 billion, reflecting a 27.5% increase from the same quarter last year [1] - The consensus EPS estimate has been revised 0.5% higher over the last 30 days, indicating a collective reevaluation by analysts [2] Group 2 - Analysts suggest that 'Revenue by Product Line- HDD- Legacy' will be $245.91 million, a decrease of 15.2% year over year [5] - The estimate for 'Revenue by Product Line- HDD- Mass Capacity' is projected at $2.01 billion, an increase of 39.6% from the prior-year quarter [5] - The consensus estimate for 'Capacity Shipped - Total' and 'Capacity Shipped - Legacy' remains N/A, with no prior year figures available [6] Group 3 - Over the past month, Seagate shares have returned +6.7%, outperforming the Zacks S&P 500 composite's +4.9% change [6] - Seagate currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance in the near future [6]

Core Viewpoint - Seagate is expected to report fiscal Q4 earnings with no growth in earnings but a significant increase in sales, indicating a mixed outlook for the company [1][2]. Financial Performance - Analysts predict Seagate will announce earnings of $2.43 per share on sales of $2.42 billion, compared to $2.44 per share and $1.89 billion in the previous year, reflecting a 28% rise in sales [1]. - The company forecasts adjusted EPS for Q4 to range between $2.20 and $2.60, with revenue expected between $2.25 billion and $2.55 billion [2]. - Seagate's market capitalization currently stands at $32 billion, with total revenue over the past twelve months amounting to $8.5 billion, and operational profits of $1.6 billion, resulting in a net income of $1.5 billion [2]. Historical Trends - Historical data shows that Seagate's stock has risen 55% of the time in the one day following earnings announcements, with a median increase of 6.1% and maximum one-day positive returns reaching 12% [1][6]. - Over the last five years, there have been 20 earnings data points, with 11 positive and 9 negative one-day returns, leading to a positive return rate of approximately 55% [6]. - This positive return rate increases to 64% when considering data from the last three years [6]. Trading Strategies - Two strategies are suggested for traders: position before the earnings release based on historical chances or analyze the correlation between immediate and medium-term returns post-earnings [3]. - A relatively lower-risk strategy involves understanding the correlation between short-term and medium-term returns after earnings, allowing traders to make informed decisions based on historical data [7].

Core Insights - Seagate Technology Holdings plc is set to report its fourth-quarter fiscal 2025 earnings on July 29, with earnings estimated at $2.46 per share, reflecting a year-over-year increase of 134.3% and revenues projected at $2.41 billion, indicating a 27.5% rise from the previous year [1] Group 1: Earnings and Revenue Expectations - The management anticipates quarterly revenues of $2.4 billion, with non-GAAP earnings expected to be $2.4 per share [1] - Seagate has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average surprise of 15.67% [1] - The expected mass capacity revenues for Q4 are projected to rise 39.5% year over year to $2 billion [7][8] Group 2: Market Demand and Product Strategy - There is a rising demand for mass capacity storage driven by increasing nearline cloud requirements, aligning with cloud investment cycles and AI-ready data center expansions [2] - Seagate's high-capacity nearline products are experiencing strong demand from cloud customers globally, contributing to increased revenues and profits [3] - The launch of the Mozaic 3+ hard drive platform featuring HAMR technology is expected to enhance Seagate's market share in mass capacity storage solutions [4] Group 3: Technology and Production - Seagate's technology strategy is focused on ramping up HAMR technology to meet the growing demand from cloud customers, with Mozaic drives being the only products in the industry offering 3 terabytes per disk [5] - The company has significantly increased production of its 24-28 terabyte PMR drives, which are now its top-selling product line in terms of revenue and exabyte shipments [4] Group 4: Financial Performance and Margins - The gross margin for the fiscal fourth quarter is projected at 36.8%, an increase from 30.9% in the prior year, driven by strong nearline demand and optimized pricing [9] - Revenue estimates for the HDD segment are pegged at $2.25 million, reflecting a 30.1% increase from the previous year, while the non-HDD segment is expected to decline by 3.4% [8]

Industry Overview - The technology sector experienced growth in Q2 2025, driven by the strong adoption of Artificial Intelligence (AI), machine learning, and Generative AI (GenAI) [1] - The ongoing digitalization wave is supporting the rapid adoption of technologies such as AI, cloud computing, 5G, and others [1] Earnings Reports - Several technology companies, including Meta Platforms, Lam Research, Flex, and Seagate Technology, are expected to report earnings soon, with potential to exceed estimates [2] AI and Cloud Computing Investments - The demand for AI is increasing, leading to a need for expanded data center capacity [3] - Major cloud providers like Amazon, Alphabet, Microsoft, and Meta Platforms have significant multi-year investment plans for cloud capacity and AI deployment, with Microsoft planning to invest $80 billion and Meta Platforms $64-$72 billion [3] Semiconductor Market - The advent of GenAI has spurred investments in chips, particularly GPUs, with semiconductor sales reaching $59 billion in May 2024, a 19.8% year-over-year increase [4] PC Market Growth - The PC segment saw growth in Q2 2025, with IDC estimating 68.4 million units sold, a 6.5% year-over-year increase [5] - Gartner estimates shipments at 63.2 million units, up 4.4% year-over-year, driven by an upgrade cycle and demand for AI-enabled PCs [5] Company-Specific Insights - Meta Platforms has an Earnings ESP of +1.83% and is expected to report Q2 2025 ad revenues of $43.94 billion, indicating a 14.6% year-over-year growth [8][9] - Lam Research has an Earnings ESP of +2.71% and is benefiting from shifts in semiconductor demand, with a consensus revenue estimate of $3.22 billion, suggesting 48.5% year-over-year growth [11][12] - Flex Ltd has an Earnings ESP of +2.77% and is expected to report Agility Solutions revenue of $3.52 billion, indicating 4.5% year-over-year growth [14][15] - Seagate Technology has an Earnings ESP of +2.34% and is projected to report Mass Capacity revenues of $2 billion, suggesting a 39.6% year-over-year growth [17][18]

Company Overview - Seagate (STX) currently holds a Momentum Style Score of B, indicating a positive momentum outlook [3] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [4] Price Performance - Over the past week, Seagate shares have increased by 1.29%, outperforming the Zacks Computer - Integrated Systems industry, which rose by 0.8% [6] - In a longer time frame, Seagate's shares have risen by 12.44% over the past month, compared to the industry's 3.35% [6] - Over the last quarter, Seagate shares have surged by 82.12%, and are up 40.92% over the past year, significantly outperforming the S&P 500, which increased by 22.7% and 15.9% respectively [7] Trading Volume - Seagate's average 20-day trading volume is 3,888,163 shares, which serves as a baseline for price-to-volume analysis [8] Earnings Outlook - In the past two months, two earnings estimates for Seagate have been revised upwards, while none have been lowered, leading to an increase in the consensus estimate from $7.95 to $7.96 [10] - For the next fiscal year, two estimates have also moved upwards with no downward revisions during the same period [10] Conclusion - Considering the positive price performance, trading volume, and favorable earnings outlook, Seagate is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [12]

Core Insights - Seagate is positioned to potentially continue its earnings-beat streak in the upcoming report, having a history of surpassing earnings estimates, particularly in the last two quarters with an average surprise of 7.97% [1][5] Earnings Performance - In the last reported quarter, Seagate achieved earnings of $1.9 per share, exceeding the Zacks Consensus Estimate of $1.76 per share, resulting in a surprise of 7.95% [2] - For the previous quarter, Seagate's earnings were $2.03 per share against an expected $1.88 per share, delivering a surprise of 7.98% [2] Earnings Estimates and Predictions - Estimates for Seagate have been trending higher, influenced by its history of earnings surprises, and it currently has a positive Earnings ESP of +2.34%, indicating bullish sentiment among analysts regarding its near-term earnings potential [5][8] - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a strong likelihood of another earnings beat, with research indicating that stocks with this combination beat consensus estimates nearly 70% of the time [6][8] Earnings ESP Explanation - The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the Most Accurate Estimate reflecting the latest analyst revisions, which may provide more accurate predictions [7] - A negative Earnings ESP does not necessarily indicate an earnings miss but can reduce the predictive power of the metric [9] Investment Strategy - It is crucial for investors to check a company's Earnings ESP prior to quarterly releases to enhance the chances of successful investment decisions, utilizing tools like the Earnings ESP Filter to identify optimal stocks to buy or sell [10]

Core Insights - Seagate Technology Holdings plc has launched its highest-capacity hard drives, the 30TB Exos M and IronWolf Pro, available globally at prices of $599.99 and $569.99 respectively for the 30TB and 28TB variants [1][2] Group 1: Product Launch and Technology - The new drives utilize Seagate's Mozaic 3+ platform and HAMR technology, addressing the increasing demand for high-performance storage driven by AI adoption [2][10] - The Exos M 30TB and IronWolf Pro 30TB drives are designed for real-time edge analytics and advanced workloads, supporting applications like image recognition and predictive maintenance [4][10] Group 2: Market Trends and Demand - The global NAS market is projected to grow at a CAGR of over 17% through 2034, driven by digital transformation and the rise of big data and AI analytics [5] - Nearly 90% of the world's data is stored in just 10 countries, but data sovereignty regulations are prompting a shift towards edge computing [5][6] Group 3: Strategic Positioning - Seagate's focus on advanced technologies like HAMR is expected to enhance its market position in mass capacity storage solutions [7][8] - The company anticipates that the ramp-up of HAMR technology will meet the growing demand for cost-effective mass storage solutions driven by AI and machine learning [8][9]

Group 1 - The global data storage needs are increasing significantly, driven by applications such as AI training, big data analytics, and cloud storage [1] - Various surveys and reports indicate different growth levels in data storage, but a common consensus is that there is a strong tailwind supporting this growth [1] Group 2 - The article emphasizes the importance of rigorous risk management and a long-term perspective on value creation in investment strategies [1]

Market Overview - The market is trending higher, led by tech stocks, with major indices nearing all-time highs and individual stocks experiencing significant gains [1] - Investor interest in momentum and speculation has increased, but caution is advised as technical indicators signal potential pullbacks [1] Technical Indicators - The Relative Strength Index (RSI) is a key momentum gauge, with readings above 70 indicating overbought conditions, and readings in the high 80s or 90s suggesting a likely near-term pullback [2] - Three stocks are identified as overbought based on elevated RSI readings, indicating a potential opportunity for investors to lock in profits [2] Western Digital Corporation (WDC) - WDC has seen a strong performance, rallying nearly 46% year-to-date and 128% from its 52-week low, driven by AI demand for data storage and favorable Q3 earnings [3][4] - The stock's RSI is at 87, indicating it is deep in overbought territory, and it has significantly exceeded its mid-to-short-term moving averages, raising the likelihood of a near-term pullback [4] - Despite being overbought, WDC is considered undervalued with a P/E ratio of 12.5 and a forward P/E of 11.9, suggesting potential for future growth [5][6] Seagate Technology (STX) - STX has mirrored WDC's rally, with shares up over 76% year-to-date and 140% from their 52-week low, driven by AI infrastructure and recovering demand [7] - The stock's RSI is nearly 90, indicating it is among the most technically stretched stocks, with a significant extension from key support levels [8] - While fundamentals are improving, the short-term risk-reward profile appears less favorable, with a potential pullback towards the $130 range anticipated [9] Sezzle Inc. (SEZL) - SEZL has gained 304% year-to-date, driven by a strong Q1 earnings report that showed significant revenue growth [11] - The stock is trading near all-time highs with an RSI of 71, indicating it has crossed into overbought territory, warranting monitoring for potential profit-taking [12] - Despite notable growth in gross merchandise volume and profitability, the stock's high valuation and technical exhaustion may lead to a pause in momentum [13] General Investment Considerations - The broader market remains strong, but the elevated RSI levels of WDC, STX, and SEZL suggest they may be due for a breather, prompting investors to consider reducing exposure or locking in profits [14][15]

Group 1 - Seagate Technology has experienced a remarkable stock market rally in 2025, with a 73% year-to-date increase, significantly outperforming the Nasdaq Composite index's 7% return [1] - The company's revenue for the first nine months of fiscal 2025 rose nearly 43% year over year to $6.65 billion, with non-GAAP income from operations increasing more than fourfold due to higher margins [3][4] - The growth is driven by strong demand for mass capacity storage in the cloud, which is expected to push annual revenue for the data center storage market to $23 billion by 2028, up from $13 billion last year [4] Group 2 - Seagate holds a 40% share of the global storage market and has guided for $2.4 billion in revenue for the recently concluded fiscal fourth quarter, representing a 27% year-over-year increase [5][6] - For the full fiscal year, revenue is projected to grow by 38%, with adjusted earnings expected to jump more than sixfold to $7.91 per share [7] - The stock is currently trading at 21 times trailing earnings and 16 times forward earnings estimates, which is significantly lower than the Nasdaq 100 index's average forward earnings multiple of 29, indicating an attractive valuation [9]