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.
STX's MACD Histogram just turned positive
The Moving Average Convergence Divergence (MACD) for STX turned positive on May 10, 2023. Looking at past instances where STX's MACD turned positive, the stock continued to rise in of 47 cases over the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where STX's RSI Oscillator exited the oversold zone, of 32 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are .
STX moved above its 50-day moving average on May 26, 2023 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for STX crossed bullishly above the 50-day moving average on May 25, 2023. This indicates that the trend has shifted higher and could be considered a buy signal. In of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher 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 324 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 226 cases where STX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 61 cases where STX's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on May 30, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on STX as a result. In of 86 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
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 May 18, 2023. 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 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 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 Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued 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 (101.010) is very high in comparison to the industry average of (4.100). P/E Ratio (22.124) is within average values for comparable stocks, (45.077). Projected Growth (PEG Ratio) (31.666) is also within normal values, averaging (89.081). Dividend Yield (0.046) settles around the average of (0.046) among similar stocks. P/S Ratio (1.521) is also within normal values, averaging (11.777).
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady 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 well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 87, placing this stock slightly better than average.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a designer of data storage products
Industry ComputerPeripherals
STX and
Correlation & Price change
A.I.dvisor indicates that over the last year, STX has been closely correlated with WDC. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if STX jumps, then WDC could also see price increases.
| Ticker / NAME | Correlation To STX | 1D Price Change % | ||
|---|---|---|---|---|
| STX | 100% | -2.07% | ||
| WDC - STX | 74% Closely correlated | +0.60% | ||
| HPQ - STX | 72% Closely correlated | -1.18% | ||
| NTAP - STX | 69% Closely correlated | -1.05% | ||
| DELL - STX | 63% Loosely correlated | -2.45% | ||
| CRSR - STX | 60% Loosely correlated | -0.53% | ||
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