Seagate (STX) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Individual i ...

Company Overview - Seagate Technology Holdings plc (STX) is valued at a market cap of $60.5 billion and is a global leader in data storage solutions, offering HDDs, SSDs, and hybrid storage products for various applications [1] Stock Performance - STX stock has significantly outperformed the broader market over the past 52 weeks, climbing 173.7% compared to the S&P 500 Index's 13.8% increase [2] - Year-to-date, STX shares have surged 211.6%, while the S&P 500 has gained 15.8% [2] - The stock has also outperformed the Technology Select Sector SPDR Fund's (XLK) return of 23.6% over the past 52 weeks [3] Recent Financial Results - On October 29, Seagate reported strong Q1 2026 results, with adjusted EPS of $2.61 and revenue of $2.63 billion, both exceeding estimates [4] - The company provided a bullish forecast for Q2, expecting revenue of $2.70 billion ± $100 million and adjusted EPS of about $2.75, surpassing Wall Street projections [4] - Investor optimism is driven by expectations of robust demand from cloud providers related to GenAI hardware investments, indicating a recovery in storage device demand [4] Earnings Expectations - For the fiscal year ending in June 2026, analysts anticipate STX's EPS to increase nearly 39% year-over-year to $10.09 [5] - The company has a promising earnings surprise history, having beaten consensus estimates in the last four quarters [5] Analyst Ratings - Among 23 analysts covering STX, the consensus rating is a "Strong Buy," with 17 "Strong Buy" ratings, one "Moderate Buy," four "Holds," and one "Strong Sell" [5] - This rating configuration has improved from three months ago, where there were 14 "Strong Buy" ratings [6] Price Targets - TD Cowen raised its price target on Seagate to $340 while maintaining a "Buy" rating [7] - The mean price target of $288.10 represents a 5.8% premium to STX's current price levels, while the highest price target of $465 suggests a potential upside of 70.7% [7]

Seagate (STX) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimates for the company.Analysts' growing optimism on the earnings prospects of this electronic storage maker is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate rev ...

Seagate (STX) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2025. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on October 28, might help the stock move higher if these key numbers are better than expectat ...

Core Viewpoint - Seagate (STX) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling activities [4]. Business Outlook - The upgrade in Seagate's rating reflects an improvement in the company's underlying business, suggesting that investors may respond positively by driving the stock price higher [5][10]. - For the fiscal year ending June 2026, Seagate is expected to earn $10.44 per share, with a 4.6% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - Seagate's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].