Seagate Technology shattered its own records for gross margin (52.7%) and operating margin (44.6%) in its fiscal fourth quarter and issued first-quarter guidance that suggests the artificial intelligence-driven storage cycle is still accelerating.
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
|
000660
|
|---|---|---|---|
Price/Earnings (Normalized) | 54.69 | 45.87 | 7.18 |
Price/Book Value | 88.96 | 18.18 | 4.46 |
Price/Sales | 15.95 | 13.86 | 6.28 |
Price/Cash Flow | 50.74 | 39.03 | 7.87 |
|
Metric
|
STX
|
WDC
|
000660
|
|---|---|---|---|
Quick Ratio | 1.07 | 0.85 | 2.26 |
Current Ratio | 1.67 | 1.33 | 2.59 |
Interest Coverage | 13.89 | 60.72 | 269.54 |
|
Metric
|
STX
|
WDC
|
000660
|
|---|---|---|---|
Return on Assets (Normalized) | 40.17% | 28.37% | 48.07% |
Return on Equity (Normalized) | 551.95% | 56.09% | 66.92% |
Return on Invested Capital (Normalized) | 71.29% | 39.12% | 51.65% |
|
1-Day Chart
|
Name
|
Price
|
Morningstar Rating for Stocks
|
Capital Allocation
|
Economic Moat
|
Market Cap
|
|---|---|---|---|---|---|---|
| Dell Technologies Inc Ordinary Shares - Class C
DELL
| LOCK|d<sS$&D | LOCK|!<T | $339B | |||
| SanDisk Corp Ordinary Shares
SNDK
| LOCK|<B^T%?Q | LOCK|&&t | $255B | |||
| Arista Networks Inc
ANET
| LOCK|xwhfXgxB | LOCK|#xg | $244B | |||
| Western Digital Corp
WDC
| LOCK|^mf$^m | LOCK|xq | $169B | |||
| Lenovo Group Ltd ADR
LNVGY
| LOCK|tB>^??h | LOCK|L<F | $51B | |||
| Lenovo Group Ltd
LNVGF
| — | LOCK|ZzF | $51B | |||
| Everpure Inc Class A
P
| — | LOCK|t$<Gl | $33B | |||
| HP Inc
HPQ
| LOCK|Zyb!gg | LOCK|rQ | $29B | |||
| Logitech International SA
LOGI
| LOCK|&r&r&l | LOCK|zP | $15B |
United States