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Feb 06, 2019
Seagate (STX, $45.14) beats earnings estimates, but geopolitical concerns remain

Seagate (STX, $45.14) beats earnings estimates, but geopolitical concerns remain

Seagate Technology outpaced earnings and revenue estimates for its latest quarter, but portended challenges from a geopolitical angle.

The data storage company reported fiscal second-quarter earnings of $1.34 per share – compared to analysts’ expectation of $1.27 a share. The figure was also higher than 55 cents per share of the year-ago period. Net income increased to $384 million, from $159 million of the same quarter a year ago.

Revenue for the quarter came in at $2.72 billion, higher than analysts’ estimate of $2.71 billion (according FactSet). However, revenue was -6.5% lower from the year-ago quarter.

Seagate CEO Dave Mosley recognized headwinds from geopolitical uncertainties for the storage industry, but also indicated his faith in long-term growth of demand.  

 

Related Ticker: STX

Aroon Indicator for STX shows an upward move is likely

STX's Aroon Indicator triggered a bullish signal on June 18, 2026. Tickeron's A.I.dvisor detected that the AroonUp green line is above 70 while the AroonDown red line is below 30. When the up indicator moves above 70 and the down indicator remains below 30, it is a sign that the stock could be setting up for a bullish move. Traders may want to buy the stock or look to buy calls options. A.I.dvisor looked at 252 similar instances where the Aroon Indicator showed a similar pattern. In of the 252 cases, the stock moved higher in the days that followed. This puts the odds of a move higher at .

Price Prediction Chart

Technical Analysis (Indicators)

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on June 12, 2026. You may want to consider a long position or call options on STX as a result. In of 78 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .

The Moving Average Convergence Divergence (MACD) for STX just turned positive on June 16, 2026. Looking at past instances where STX's MACD turned positive, the stock continued to rise in of 46 cases over the following month. The odds of a continued upward trend are .

Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where STX advanced for three days, in of 346 cases, the price rose further within the following month. The odds of a continued upward trend are .

Bearish Trend Analysis

The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 3 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where STX declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .

STX broke above its upper Bollinger Band on June 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Fundamental Analysis (Ratings)

The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. STX’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 82, placing this stock better than average.

The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: STX's P/B Ratio (222.222) is very high in comparison to the industry average of (13.548). P/E Ratio (101.540) is within average values for comparable stocks, (47.352). Projected Growth (PEG Ratio) (0.740) is also within normal values, averaging (3.847). Dividend Yield (0.003) settles around the average of (0.020) among similar stocks. P/S Ratio (21.882) is also within normal values, averaging (102.088).

Notable companies

The most notable companies in this group are Dell Technologies (NYSE:DELL), Western Digital Corp (NASDAQ:WDC), Seagate Technology Holdings PLC (NASDAQ:STX), Arista Networks Inc (NYSE:ANET), HP (NYSE:HPQ), 3D Systems Corp (NYSE:DDD).

Industry description

Computer Processing Hardware industry produces central processing unit, monitor, keyboard, computer data storage devices, and graphics card. Business activity and economic growth are potential drivers of this industry – if more businesses are growing or flourishing, so would their investments in computer equipment. Dell Technologies, Inc, Hewlett Packard Enterprise Co., NCR Corporation are key producers of computer processing hardware.

Market Cap

The average market capitalization across the Computer Processing Hardware Industry is 29.17B. The market cap for tickers in the group ranges from -0.18 to 264.6B. DELL holds the highest valuation in this group at 264.6B. The lowest valued company is HAUP at -0.18.

High and low price notable news

The average weekly price growth across all stocks in the Computer Processing Hardware Industry was 5%. For the same Industry, the average monthly price growth was 34%, and the average quarterly price growth was 47%. ALOT experienced the highest price growth at 68%, while SCKT experienced the biggest fall at -24%.

Volume

The average weekly volume growth across all stocks in the Computer Processing Hardware Industry was -19%. For the same stocks of the Industry, the average monthly volume growth was 119% and the average quarterly volume growth was 8%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 46
P/E Growth Rating: 67
Price Growth Rating: 47
SMR Rating: 78
Profit Risk Rating: 81
Seasonality Score: 4 (-100 ... +100)
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a designer of data storage products

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