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Seagate Technology (NASDAQ:STX) is something I've been watching for a long time. The last time I covered it was in January, and as I often do, I labeled it a strong buy. I
Seagate Continues To Flourish On Rising Demand, Strong Pricing
Summary
- Seagate continues to beat earnings estimates, driven by robust cloud and AI storage demand, and maintains momentum with strong Q3 results and positive Q4 guidance.
- HDD demand remains resilient despite SSD competition, with Seagate's leadership and new HAMR technology supporting future growth and higher-capacity drives.
- Valuation is attractive with a forward P/E below the sector median and a solid dividend yield, but shares are less compelling at current elevated prices.
- I reduced my rating from strong buy to buy, citing valuation; investors should monitor demand trends and be mindful of potential recession risks.
I’m Jason Ditz and I have 20 years of experience in foreign policy research. My work has appeared in Forbes, Toronto Star, Minneapolis Star-Tribune, Providence Journal, Washington Times and the Detroit Free Press, as well as American Conservative Magazine and the Quincy Institute for Responsible Statecraft. I have been writing investment analysis, with a focus on deep-discount value plays, for over 25 years. I I got my start analyzing securities for a stock-picking contest on the now defunct StockJungle in college. After winning one of the top prizes for quarterly performance, I was hired to write a monthly article about micro-cap stocks, again with a value perspective. After StockJungle went belly-up, with its focus on momentum investing, I started to take a close interest in the contrarian investment philosophy of David Dreman. I began writing for Motley Fool and ultimately Seeking Alpha. My goal is to find underappreciated companies with a focus on returning value to investors.
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