Seagate(STX, $59.53) beats fiscal Q2 earnings expectations
On Friday, Seagate reported fiscal-second-quarter earnings and revenue that surpassed analysts' expectations.
For the quarter ended Jan. 1, the data storage company’s adjusted earnings came in at $1.29 a share, compared to the $1.13 expected by analysts polled by FactSet.
Revenue fell -2.7% year-over-year to $2.62 billion, also exceeding analysts’ forecast of $2.56 billion.
"Seagate delivered strong, double-digit revenue, earnings and free cash flow growth in the December quarter, supported by broad-based improvement across nearly every served market and geography, and we had solid customer demand for our mass capacity products," Chief Executive Dave Mosley mentioned in a statement.
STX sees its 50-day moving average cross bearishly below its 200-day moving average
The 50-day moving average for STX moved below the 200-day moving average on January 03, 2025. This could be a long-term bearish signal for the stock as the stock shifts to an downward trend.
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for STX moved out of overbought territory on January 27, 2025. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 39 similar instances where the indicator moved out of overbought territory. In of the 39 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Momentum Indicator moved below the 0 level on February 03, 2025. You may want to consider selling the stock, shorting the stock, or exploring put options on STX as a result. In of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for STX turned negative on February 03, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at .
STX moved below its 50-day moving average on February 03, 2025 date and that indicates a change from an upward trend to a downward trend.
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 January 14, 2025. 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.
Bullish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
The 10-day moving average for STX crossed bullishly above the 50-day moving average on January 23, 2025. This indicates that the trend has shifted higher and could be considered a buy signal. In of 18 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 .
The Aroon Indicator entered an Uptrend today. In of 212 cases where STX Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
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 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 78, placing this stock slightly better than average.
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 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 (101.010) is very high in comparison to the industry average of (6.425). P/E Ratio (22.124) is within average values for comparable stocks, (59.439). Projected Growth (PEG Ratio) (0.178) is also within normal values, averaging (55.962). Dividend Yield (0.031) settles around the average of (0.034) among similar stocks. P/S Ratio (2.950) is also within normal values, averaging (11.728).
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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.
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General Information
a designer of data storage products
Industry ComputerPeripherals