Seagate Technology Holdings (NASDAQ:STX) Shows Strong Technical and Fundamental Momentum

Investors looking for high-growth chances often mix technical momentum methods with fundamental growth review to find stocks set for continued strong performance. The Mark Minervini Trend Template offers a structured method to find stocks in clear upward trends, while high growth momentum standards make sure these companies display improving business basics. This combined method helps find securities that not only show technical health but also have the basic financial momentum to possibly maintain their progress.

Technical Health and Trend Template Match

Seagate Technology Holdings (NASDAQ:STX) shows very good technical features that match well with Minervini's Trend Template needs. The template focuses on stocks in definite stage 2 upward trends with correct moving average order and high relative strength, all important parts for finding lasting momentum.

Important technical measures supporting STX's qualification are:

• Moving Average Order: Current price ($253.86) trades much higher than all main moving averages (50-day: $236.72, 150-day: $167.55, 200-day: $147.95)
• Trending Averages: All main moving averages show upward angles, confirming continued buying interest
• 52-Week Performance: Trading at 301% higher than its 52-week low ($63.19) and within 15% of its 52-week high ($297.88)
• Relative Strength: Excellent 97.52 rating, showing it performs better than almost all other stocks

These technical features are important within the Minervini method as they find stocks with institutional backing and clear momentum, exactly the type of situations that have in the past created large returns during trending markets.

Fundamental Growth Momentum

Besides technical health, STX shows strong fundamental momentum that supports its inclusion for growth investors. The company's recent financial results display very good improvement across important measures.

Earnings growth details:

• TTM EPS Growth: 196% year-over-year rise to $9.13 per share
• Quarterly Improvement: Recent quarters showing 65%, 147%, and 476% year-over-year EPS growth
• Estimate Revisions: Next-year EPS estimates changed upward by 16% over past three months
• Consistent Beat History: Four straight quarters of EPS beats averaging 7.2% higher than expectations

Revenue and margin improvement:

• TTM Revenue Growth: 32% year-over-year rise
• Profit Margin Improvement: Quarterly margins got better from 14.5% to 20.9% over past year
• Free Cash Flow Growth: 113% year-over-year rise to $5.72 per share

These fundamental gains are important within the Minervini approach, which notes that the largest stock winners usually show high earnings and sales improvement before their main price moves. The mix of technical health and fundamental improvement creates the good setting for continued price gains.

Market Situation and Sector Position

Working in the Technology Hardware, Storage & Peripherals industry, STX shows clear sector position with its 97% industry-relative strength ranking. This better performance within its sector is another important Minervini standard, as market leaders often continue leading during bullish periods. The stock's technical rating of 10/10 further confirms its very good condition relative to the wider market.

Technical Review Summary

According to ChartMill's detailed technical report, STX gets a perfect 10/10 technical rating, showing very good health across all checked time periods. The review notes the stock's stable performance history and steady scoring across all technical parts. While the current setup rating of 4/10 suggests investors might look for better consolidation patterns for good entry points, the basic technical condition stays very good. The full technical review gives more detail into support levels and price structure.

View Complete Technical Analysis Report

Finding Similar Chances

For investors wanting to find more stocks that meet both Minervini Trend Template standards and high growth momentum needs, our predefined screen often finds possible choices showing similar technical and fundamental features.

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Disclaimer: This review is for information and learning only and does not make investment advice. All investment choices should come from personal study and risk comfort. Past results do not ensure future outcomes. Please read our full disclaimer and terms of service for complete understanding of our duties.