Note: FY'24 ended in June 2024
Alex Coffey kicks off the week with a pair of example trades in 2 tech stocks reporting earnings on Tuesday: Seagate (STX) and Texas Instruments (TXN). This segment was pretaped and later posted after Monday's closing bell.
Seagate (STX) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
STX's fiscal Q1 performance is likely to have gained from incremental improvements in mass capacity demand driven by nearline cloud products.
Looking beyond Wall Street's top -and-bottom-line estimate forecasts for Seagate (STX), delve into some of its key metrics to gain a deeper insight into the company's potential performance for the quarter ended September 2024.
Momentum in mass capacity solutions is likely to fuel STX's top-line expansion. Intensifying competition is concerning.
The data storage market has massive growth opportunities thanks to catalysts such as AI, and this company is all about data storage.
Seagate Technology Holdings plc NASDAQ: STX is a leading provider of consumer and enterprise data storage solutions. It is the largest hard disk drive (HDD) manufacturer in the world and also sells solid-state drives (SSD).
The exponential growth in data generation and AI projects boosts demand for Seagate's storage solutions, ensuring long-term relevance and profitability. Despite outperforming major indexes, STX's volatility remains somewhat risky, but its current lower trend channel position presents a better buying opportunity. Monitoring upcoming earnings reports from Seagate and Nvidia, along with the November election, is crucial for assessing Seagate's future stock trajectory.
Seagate Technology saw bullish price momentum for an extended period continuing, in line with overall tech sector market bullishness. 3% dividend yield, but still lacking proven dividend growth. Despite negative equity, STX shows strong cash flow and declining debt, supporting dividend sustainability for now.
STX's growth prospects look promising amid increasing mass capacity demand and improving margin performance.
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