Seagate Technology Holdings PLC (STX) Hits Fresh High: Is There Still Room to Run?

Company Performance - Seagate's stock has increased by 36.9% over the past month, reaching a new 52-week high of $234.12, and has gained 165.5% since the start of the year, outperforming the Zacks Computer and Technology sector's 21.6% gain and the Zacks Computer - Integrated Systems industry's 43.6% return [1] - The company has consistently beaten earnings estimates, reporting EPS of $2.59 against a consensus estimate of $2.46 in its last earnings report [2] Earnings Projections - For the current fiscal year, Seagate is expected to post earnings of $10.44 per share on revenues of $10.17 billion, reflecting a 28.89% change in EPS and an 11.82% change in revenues [3] - For the next fiscal year, earnings are projected to be $13.35 per share on revenues of $11.12 billion, indicating a year-over-year change of 27.93% in EPS and 9.27% in revenues [3] Valuation Metrics - Seagate has a Value Score of C, a Growth Score of A, and a Momentum Score of D, resulting in a VGM Score of B [6] - The stock trades at 22X current fiscal year EPS estimates, slightly below the peer industry average of 23.6X, and at 27.1X on a trailing cash flow basis compared to the peer group's average of 25.3X [7] - The PEG ratio stands at 0.92, indicating that the company is not in the top tier from a value perspective [7] Zacks Rank - Seagate holds a Zacks Rank of 2 (Buy), supported by a solid earnings estimate revision trend, making it a favorable choice for investors [8] Industry Comparison - Micron Technology, a peer in the industry, has a Zacks Rank of 1 (Strong Buy) and shows strong performance with a 37.7% gain over the past month, expected earnings of $16.58 per share, and revenue of $53.61 billion for the current fiscal year [9][10] - The Computer - Integrated Systems industry is performing well, ranking in the top 15% of all industries, providing positive tailwinds for both Seagate and Micron Technology [11]