Core Viewpoint - Seagate (STX) is positioned as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][10]. Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding Seagate's earnings prospects, which is expected to positively influence its stock price [2]. - For the current quarter, Seagate is projected to earn $3.01 per share, representing a 58.4% increase from the previous year [6]. - Over the past 30 days, the Zacks Consensus Estimate for Seagate has risen by 27.97%, with no negative revisions reported [6]. - For the full year, the earnings estimate is $12.01 per share, marking a 48.3% increase from the prior year, with three estimates moving higher and no negative revisions [7]. Zacks Rank - Seagate currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock price outperformance [3][9]. - Stocks with a Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [9]. Stock Performance - Seagate's stock has increased by 62.2% over the past four weeks, driven by strong estimate revisions, suggesting potential for further upside [10].

Core Viewpoint - Seagate (STX) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, with institutional investors playing a role in this relationship [4]. - Rising earnings estimates for Seagate suggest an improvement in the company's underlying business, which could lead to higher stock prices as investors respond positively [5]. Zacks Rating System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [10]. Recent Earnings Estimate Revisions for Seagate - For the fiscal year ending June 2026, Seagate is expected to earn $11.26 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 12.5% over the past three months [8].

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]

Core Viewpoint - Seagate (STX) shows a promising earnings outlook, with analysts raising their earnings estimates, which is likely to positively impact the stock price [1][2]. Earnings Estimate Revisions - Current-quarter earnings are projected at $2.68 per share, reflecting a year-over-year increase of +32.0% [6]. - Over the past 30 days, the Zacks Consensus Estimate for Seagate has risen by 13.78%, with two estimates increasing and no negative revisions [6]. - For the full year, earnings are expected to be $11.02 per share, indicating a +36.1% change from the previous year [7]. - The consensus estimate for the current year has increased by 7.91%, supported by four upward revisions and no negative changes [7][8]. Zacks Rank and Performance - Seagate currently holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts regarding positive earnings revisions [9]. - Historically, Zacks 1 Ranked stocks have delivered an average annual return of +25% since 2008, suggesting a strong potential for outperformance [3]. - Stocks with Zacks Rank 1 and 2 have been shown to significantly outperform the S&P 500 [9]. Stock Performance - The stock has gained 9.4% over the past four weeks, driven by favorable estimate revisions, indicating strong investor interest [10].

Core Viewpoint - Seagate (STX) is anticipated to report a year-over-year increase in earnings driven by higher revenues, with the actual results having a significant impact on its near-term stock price [1][2]. Earnings Expectations - The upcoming earnings report is expected to be released on October 28, with a consensus EPS estimate of $2.37, reflecting a +50% year-over-year change. Revenues are projected to be $2.53 billion, up 16.7% from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 1.35% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - The Most Accurate Estimate for Seagate is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +1.90%. This suggests a bullish outlook on the company's earnings prospects [12]. Historical Performance - Seagate has consistently beaten consensus EPS estimates, achieving this in the last four quarters. In the most recent quarter, the company reported earnings of $2.59 per share against an expected $2.46, resulting in a surprise of +5.28% [13][14]. Investment Considerations - While Seagate is positioned as a strong candidate for an earnings beat, investors are advised to consider other factors that may influence stock performance beyond earnings results [15][17].

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].