Seagate's profitability climbed in its fiscal first quarter, with management expecting further revenue and margin gains. Revenue rose 61% year over year, incremental gross margin was 88%, and earnings per share rose nearly 200%.
Demand for data center buildouts is only increasing, driven by long-term structural trends such as AI and Internet of Things. This could prolong the current upcycle and make it more durable than previous cycles.
The HDD market is commodity-like and cyclical, leaving Seagate vulnerable to market pricing declines that can shrink the top line and sink margins. In HDD downturns, these stocks can crater.
|
Metric
|
STX
|
WDC
|
MU
|
|---|---|---|---|
Price/Earnings (Normalized) | 43.00 | 29.01 | 12.41 |
Price/Book Value | 43.98 | 15.25 | 7.58 |
Price/Sales | 11.16 | 10.13 | 7.97 |
Price/Cash Flow | 30.33 | 25.50 | 11.13 |
|
Metric
|
STX
|
WDC
|
MU
|
|---|---|---|---|
Quick Ratio | 1.07 | 0.87 | 2.90 |
Current Ratio | 1.67 | 1.43 | 3.31 |
Interest Coverage | 13.89 | 91.30 | 931.07 |
|
Metric
|
STX
|
WDC
|
MU
|
|---|---|---|---|
Return on Assets (Normalized) | 40.17% | 34.53% | 72.26% |
Return on Equity (Normalized) | 551.95% | 61.74% | 102.18% |
Return on Invested Capital (Normalized) | 71.29% | 47.32% | 90.66% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Dell Technologies Inc Ordinary Shares - Class C
DELL
| LOCK|s&rztxXb | LOCK|BGP | $319B | |||
| Arista Networks Inc
ANET
| LOCK|N?@Ch$D? | LOCK|^jN | $236B | |||
| SanDisk Corp Ordinary Shares
SNDK
| LOCK|WPSdh! | LOCK|y@ | $189B | |||
| Western Digital Corp
WDC
| LOCK|&k?&?> | LOCK|qR | $143B | |||
| Everpure Inc Class A
P
| — | LOCK|yl<m? | $46B | |||
| Lenovo Group Ltd ADR
LNVGY
| LOCK|&Fr&R< | LOCK|?H | $35B | |||
| Lenovo Group Ltd
LNVGF
| — | LOCK|^pr | $35B | |||
| HP Inc
HPQ
| LOCK|!LVG>< | LOCK|$^# | $30B | |||
| Logitech International SA
LOGI
| LOCK|b<&tM% | LOCK|r^G | $16B |
United States