SEAGATE TECHNOLOGY HOLDINGS (NASDAQ:STX) – A High Growth Momentum Stock with Strong Technical Setup

SEAGATE TECHNOLOGY HOLDINGS (NASDAQ:STX) stands out as a compelling candidate for high-growth momentum investors, combining strong earnings acceleration with a favorable technical breakout setup. The stock scores well on both fundamental and technical metrics, making it worth a closer look.

Why STX Fits High Growth Momentum Criteria

• Exceptional EPS Growth: STX has delivered staggering year-over-year EPS growth of 13,020% (TTM), with recent quarterly growth rates exceeding 475%. This momentum is supported by accelerating sales growth of 30.5% in the latest quarter.
• Consistent Earnings Surprises: The company has beaten EPS estimates in all of the last four quarters, with an average surprise of 14.5%.
• Expanding Profit Margins: Quarterly profit margins have improved from 14.07% two quarters ago to 15.74% in the most recent report, indicating better cost management and pricing power.
• Positive Analyst Revisions: EPS estimates for the next year have been revised upward by 6.4% over the last three months, reflecting improving sentiment.

Technical Strength and Setup Quality

STX earns a Technical Rating of 9 and a Setup Rating of 8, signaling both strong trend health and a consolidation pattern that could precede further upside. Key technical observations include:

• Strong Uptrend: The stock is trading near its 52-week high, with both short-term and long-term trends positive.
• Support Zones: Two key support levels exist at $146.76-$148.57 and $142.00-$143.97, providing clear stop-loss areas for traders.
• Reduced Volatility: Recent price action shows tightening consolidation, often a precursor to a breakout.
• Institutional Interest: Large players have shown increased buying activity, reinforcing bullish sentiment.

A potential breakout above $151.95 could signal further upside, with a suggested stop-loss below $146.75.

For a deeper technical breakdown, review the full technical report on STX.

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

Disclaimer

This is not investment advice. The observations here are based on data at the time of writing, and market conditions can change. Always conduct your own research before making investment decisions.