Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
Growth Stock Analysis as of 02 Sept. 2023
Top Growth Stock
NYSE: STX
- * Seagate Technology Holdings plc specializes in delivering comprehensive infrastructure solutions for mass data storage. The core offerings revolve around hard disk drives, often referred to as disk drives or hard drives.
- * Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally.
- *Seagate’s tailored its products and services for data centers and cloud providers to address the escalating demand for high-capacity and high-performance storage solutions in large-scale data environments.
- * The company serves a broad customer base, encompassing individual consumers, small to large businesses, and cloud service providers. Seagate customizes its offerings to meet the distinct storage needs of each segment, ranging from capacity and performance to reliability.
- * Seagate actively pursues sustainability initiatives, such as designing energy-efficient storage solutions and implementing recycling programs.
- * Seagate company sells its products primarily to OEMs (original equipment manufacturers), distributors, and retailers.
What we think are pros of business:
- Â Seagate’s dominant position as a leading manufacturer in the data storage industry, along with its significant market share.
- Seagate can serve various market segments and applications, ranging from individual consumers to large-scale enterprise data centers, enhancing its revenue streams.
- Seagate’s global footprint allows it to tap into international markets and adapt to localized demands, fostering a resilient and expansive customer base.
- Seagate’s history of strategic acquisitions diversifies its product portfolio, enhancing its adaptability in the ever-evolving technology industry landscape.
- Â It provides Lyve edge-to-cloud mass capacity platform.
- Strong market position: well-known brand, large customer base from different regions or countries.
What we think the risks are:
- Market conditions can change quickly, affecting demand for storage products and potentially impacting the company’s financial performance.
- Advances in technology, such as the shift towards cloud-based storage and the emergence of new storage solutions, could disrupt Seagate’s traditional business model and reduce demand for its products.
- Seagate faces intense competition from other storage manufacturers and technology companies. Competitors may introduce more innovative products or offer lower prices, cutting Seagate’s market share.
- Seagate operates in multiple countries and must adhere to various international and local regulations, including import-export controls, data privacy, etc.
Fundamentals:
- Market Cap: 15.28 Billion
- Revenue: 7.38 B
- Dividend: 0.70$
Technical for a long-term perspective:
– Taking support at the lower swing and at long-term trendline support.
– Breakout on Weekly charts and it closes above the 200 EMA which indicates the strength in this stock.
– It is very strong on the chart and if it closes above 75 & 78 then it may shoot up to 83/95/100/114
– RSI is very bullish at current levels.
– Already given a breakout from the support levels which shows the confidence in bullish price action.
Entry = Above 73
Stop Loss = 63
Target = 83 / 95 / 100 /114
Our Final Thought:
Seagate Technology Holdings is at the lower levels for now with the negative signs of PE ratio and declining revenue. In the upcoming years, it may grow significantly due to an increase in the Storage demand to enter into the cloud storage of various businesses. On a technical view, this stock is very bullish and shows a significant breakout at the current levels and it may further go up in the upcoming weeks. There is a small resistance around 75 to 78 but momentum is very strong and it will break this resistance level. Â revenue is expected to fall over 30% each in fiscal 2023 due to weak consumer demand, high inflation, and economic uncertainties. However, consumer demand will likely gain traction in 2024, with sales expected to rise in the high teens. It is now trading at a lower valuation that why it is looking good for the upcoming years and it will get benefit as it gains business.
Please note this is only an opinion and not financial advice. Direct stock investing is subject to business and market risks. Therefore, it’s highly recommended to do proper risk management and your own due diligence before investing.
More Articles on Longterm Stock Analysis
Join our Discord Community for the Latest News Updates and Trading Ideas.