Seagate Technology Holdings (NASDAQ:STX) Emerges as a High-Growth Technical Leader

Seagate Technology Holdings (NASDAQ:STX) has appeared as a notable option for investors using a combined technical and fundamental growth plan. The stock was found through a screening process that joins Mark Minervini's Trend Template with a High Growth Momentum (HGM) rating, a method made to find equities displaying both firm price trends and basic financial speed-up. This two-part plan aims to find market leaders early in their growth periods by checking technical firmness and confirming it with solid financial results.

Meeting the Minervini Trend Template

The Minervini Trend Template is a structured technical system used to find stocks in a confirmed, lasting uptrend. Its rules are made to filter for securities showing firmness across several time periods. A look at Seagate's chart verifies it meets the main parts of this template.

• Price Above Key Moving Averages: The stock's present price is located above its rising 50-day ($201.47), 150-day ($144.53), and 200-day ($132.38) simple moving averages. This arrangement is a standard sign of a sound long-term bull market stage.
• Moving Average Alignment: The 50-day moving average is clearly above both the 150-day and 200-day averages, while the 150-day is above the 200-day. This step-by-step order of shorter-term averages above longer-term ones shows speeding-up speed and confirms the firmness of the set uptrend.
• Position Relative to 52-Week Range: The present price is trading notably above its 52-week low, having increased over 240% from that level. Also, it is settling within a fair distance of its 52-week high, showing it keeps firm speed without being overly stretched.
• Superior Relative Strength: With a ChartMill Relative Strength (CRS) rating of 95.2, STX is doing better than 95% of all stocks in the market. High relative strength is a key part of the Minervini method, as it finds market leaders that are in high request from institutional investors.

This technical setup is important because it factually finds stocks that are not just increasing, but are doing so with a formation that implies the trend is wide and lasting, therefore filtering out irregular or feeble price changes.

Fundamentals Driving High Growth Momentum

Beyond a technically sound chart, the plan needs proof of strong fundamental growth, which is the motor for continued price increase. Seagate's recent financial reports show a time of fast growth, supporting its high speed rating.

• Earnings Per Share (EPS) Explosion: The company has shown huge year-over-year EPS growth. The trailing twelve-month (TTM) EPS has jumped by over 532%, with recent quarters showing even more striking rises, including 147% in the last quarter and a remarkable 1,592% two quarters before. This degree of earnings speed-up is a main filter in growth investing, as "big earnings attract big attention" from the market.
• Consistent Earnings Surprises: Seagate has exceeded EPS guesses in all of the last four quarters, with an average beat of 6.27%. Positive earnings surprises often work as a trigger, making analysts change their future guesses upward and drawing new institutional buying.
• Solid Revenue Recovery and Growth: After a time of shrinking, revenue growth has come back strongly. TTM revenue is up almost 39% year-over-year, with recent quarterly growth numbers steadily in the high double-digits. This top-line growth confirms that the earnings gain is backed by firm demand, not just cost reduction.
• Increasing Profit Margins: The company's profit-making has greatly improved, with the profit margin in the last quarter increasing to nearly 20%, up from about 15% in the earlier quarter and 5% in the last fiscal year. Increasing margins show pricing ability and operational effectiveness, which are signs of a high-standard growth company.

These basic measures are key because they give the "why" for the stock's firm price trend. The Minervini plan states that the best-performing stocks are usually supported by major gains in sales, earnings, and margins.

Technical Health and Setup Summary

According to the detailed ChartMill Technical Report, Seagate Technology Holdings shows a firm technical picture. The stock gets a high technical rating of 8 out of 10, showing its good long-term trend and better market-relative performance. While the short-term trend is presently neutral as the stock settles its large gains, the long-term trend stays firmly positive. The study finds key support levels near $214 and resistance about $225. A clear move above this resistance area could show the next step up, while the support zone gives a sensible level for risk control.

For a full and detailed technical breakdown, you can check the full technical analysis report for STX.

Discover More High-Growth Candidates

Seagate Technology Holdings is a prime example of the kind of chance this combined screening method aims to find. For investors curious in finding other stocks that meet these strict technical and fundamental growth rules, new options are found daily. You can look at the present results and do your own detailed study using the High Growth Momentum + Trend Template screen on ChartMill.

Disclaimer: This is not investment advice. The content is meant to be used for information and learning only. It is very important to do your own study and think about your personal financial position and risk comfort before making any investment choices.