Seagate (STX) Stock Sinks As Market Gains: What You Should Know

Seagate (STX) closed at $42.65 in the latest trading session, marking a -0.79% move from the prior day. This change lagged the S&P 500's daily gain of 0.47%. Meanwhile, the Dow gained 0.95%, and the Nasdaq, a tech-heavy index, added 2.3%.

Prior to today's trading, shares of the electronic storage maker had lost 20.32% over the past month. This has was narrower than the Computer and Technology sector's loss of 28.18% and the S&P 500's loss of 28.7% in that time.

Investors will be hoping for strength from STX as it approaches its next earnings release. On that day, STX is projected to report earnings of $1.35 per share, which would represent year-over-year growth of 62.65%. Our most recent consensus estimate is calling for quarterly revenue of $2.65 billion, up 14.48% from the year-ago period.

Looking at the full year, our Zacks Consensus Estimates suggest analysts are expecting earnings of $5.06 per share and revenue of $10.57 billion. These totals would mark changes of +4.98% and +1.76%, respectively, from last year.

Investors should also note any recent changes to analyst estimates for STX. Recent revisions tend to reflect the latest near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. STX currently has a Zacks Rank of #2 (Buy).

Digging into valuation, STX currently has a Forward P/E ratio of 8.49. This represents a discount compared to its industry's average Forward P/E of 9.53.

Meanwhile, STX's PEG ratio is currently 7.02. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer- Storage Devices was holding an average PEG ratio of 1.61 at yesterday's closing price.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 13, which puts it in the top 6% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.