Seagate Technology Holdings (NASDAQ:STX) – A High-Growth Momentum Stock with Strong Technical Setup

Seagate Technology Holdings (NASDAQ:STX) stands out as a high-growth momentum candidate with a solid technical setup, making it an interesting prospect for investors. The company, a leader in data storage solutions, has demonstrated strong earnings momentum while also presenting a favorable chart pattern for potential breakout opportunities.

Growth Momentum Highlights

Seagate’s fundamentals reflect impressive growth trends:

• Earnings Growth: EPS surged 13,020% year-over-year (TTM), with recent quarterly EPS growth exceeding 475%.
• Sales Momentum: Revenue grew 36.3% over the past year, with the latest quarter posting a 30.5% year-over-year increase.
• Profit Margins: The company’s profit margin expanded to 15.7% in the most recent quarter, up from 14.5% in the prior quarter.
• Analyst Confidence: EPS estimates for next year have been revised upward by 6.2% over the past three months.
• Consistent Earnings Beats: Seagate has surpassed EPS estimates in each of the last four quarters, with an average beat of 14.5%.

These metrics contribute to a High Growth Momentum Rating of 6, indicating strong earnings and sales acceleration.

Technical Strength & Setup

The stock’s technical profile is equally compelling:

• Technical Rating of 9: STX is in a strong uptrend, outperforming 87% of its peers in the Technology Hardware, Storage & Peripherals industry.
• Setup Rating of 7: The stock is consolidating after a recent rally, with reduced volatility and clear support near $127.26.
• Bull Flag Pattern: The current pullback after a strong upward move suggests a potential continuation pattern.
• Support Zones: Key support levels at $124.64-$127.26 provide a logical area for stop-loss placement.

For a deeper look at the technicals, review the full technical report for STX.

Why This Combination Matters

High-growth stocks with strong technical setups often present favorable risk-reward opportunities. Seagate’s combination of accelerating earnings, expanding margins, and a well-defined chart pattern makes it a candidate worth monitoring.

Our High Growth Momentum Breakout Setups Screen lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investing advice! The article highlights observations at the time of writing, but you should always conduct your own analysis before making investment decisions.