Markets
News
Analysis
User
24/7
Economic Calendar
Education
Data
- Names
- Latest
- Prev
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
A:--
F: --
A:--
F: --
A:--
F: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
A:--
F: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
A:--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
--
F: --
P: --
No matching data
Latest Views
Latest Views
Trending Topics
To quickly learn market dynamics and follow market focuses in 15 min.
In the world of mankind, there will not be a statement without any position, nor a remark without any purpose.
Inflation, exchange rates, and the economy shape the policy decisions of central banks; the attitudes and words of central bank officials also influence the actions of market traders.
Money makes the world go round and currency is a permanent commodity. The forex market is full of surprises and expectations.
Top Columnists
Enjoy exciting activities, right here at FastBull.
The latest breaking news and the global financial events.
I have 5 years of experience in financial analysis, especially in aspects of macro developments and medium and long-term trend judgment. My focus is maily on the developments of the Middle East, emerging markets, coal, wheat and other agricultural products.
BeingTrader chief Trading Coach & Speaker, 8+ years of experience in the forex market trading mainly XAUUSD, EUR/USD, GBP/USD, USD/JPY, and Crude Oil. A confident trader and analyst who aims to explore various opportunities and guide investors in the market. As an analyst I am looking to enhance the trader’s experience by supporting them with sufficient data and signals.
Latest Update
Risk Warning on Trading HK Stocks
Despite Hong Kong's robust legal and regulatory framework, its stock market still faces unique risks and challenges, such as currency fluctuations due to the Hong Kong dollar's peg to the US dollar and the impact of mainland China's policy changes and economic conditions on Hong Kong stocks.
HK Stock Trading Fees and Taxation
Trading costs in the Hong Kong stock market include transaction fees, stamp duty, settlement charges, and currency conversion fees for foreign investors. Additionally, taxes may apply based on local regulations.
HK Non-Essential Consumer Goods Industry
The Hong Kong stock market encompasses non-essential consumption sectors like automotive, education, tourism, catering, and apparel. Of the 643 listed companies, 35% are mainland Chinese, making up 65% of the total market capitalization. Thus, it's heavily influenced by the Chinese economy.
HK Real Estate Industry
In recent years, the real estate and construction sector's share in the Hong Kong stock index has notably decreased. Nevertheless, as of 2022, it retains around 10% market share, covering real estate development, construction engineering, investment, and property management.
Hongkong, China
Ho Chi Minh, Vietnam
Dubai, UAE
Lagos, Nigeria
Cairo, Egypt
White Label
Data API
Web Plug-ins
Affiliate Program
View All
No data
Not Logged In
Log in to access more features
FastBull Membership
Not yet
Purchase
Log In
Sign Up
Hongkong, China
Ho Chi Minh, Vietnam
Dubai, UAE
Lagos, Nigeria
Cairo, Egypt
White Label
Data API
Web Plug-ins
Affiliate Program
Valued at operates in the technology sector, offering data management software, enterprise storage, and cloud services. The company provides hybrid and public cloud solutions to industries such as finance, healthcare, and telecommunications globally.
Companies valued at $10 billion or more are generally considered “large-cap” stocks, and NetApp fits this criterion perfectly. NetApp is renowned for its ONTAP data management software, which uniquely integrates cloud, hybrid, and on-premises environments with advanced data protection, storage efficiency, and seamless Kubernetes and multi-cloud support.
However, NetApp has dropped 11.8% from its 52-week high of $135.01, achieved in July. Shares of NTAP are down 5.6% over the past three months, underperforming the broader S&P 500 Index's ($SPX) nearly 3% gains over the same time frame.
Nevertheless, over a longer term, NTAP has risen 35% on a YTD basis, outperforming SPX's 18.1% gains. Shares of NetApp have soared 53.2% over the past 52 weeks, compared to SPX's 26.6% returns over the same time frame.
EL has been trading above its 200-day moving average since last year. But, it has remained below its 50-day moving average since late August.
NetApp has outperformed due to rising demand for its flash-based products and AI-driven hardware, which are better suited for high-performance computing environments. Additionally, the company has benefited from growth in its hybrid cloud business and improved profitability through cost-cutting measures.
However, the stock tumbled 9.6% following its Q1 earnings release on Aug. 28 due to concerns about slowing growth in its cloud segment despite better-than-expected revenue of $1.5 billion and adjusted EPS of $1.56 per share. Investors were also cautious about the company's lowered revenue guidance for Q2, which raised concerns about a potential growth slowdown.
To highlight NetApp's outperformance, its rival Western Digital Corporation has gained 49.8% over the past 52 weeks and is up 24.8% on a YTD basis, both showing smaller gains compared to NTAP in the same periods.
Despite the stock’s strong price action over the past year, analysts are cautiously optimistic about its prospects. The stock has a consensus rating of “Moderate Buy” from the 18 analysts in coverage, and the mean price target of $132.33 is a premium of 11.2% to current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
NetApp’s NTAP shares have been performing well on the trading front, with a gain of 33.7% year to date compared with the sub-industry and the S&P 500 composite’s growth of 33.4% and 18.1%, respectively.
Strong financial performance is driving the stock’s trajectory. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters with an average surprise of 8.6%.
Closing at $117.86 as of yesterday’s trading session, NTAP stock is currently trading 12.7% below its 52-week high of $135.01 attained on July 10, 2024. This reflects further upside potential. Increasing demand across the all-flash and cloud storage portfolio is emerging as a tailwind for NetApp’s top line.
Year-to-Date Price Performance
What is Driving NTAP’s Performance?
NetApp is witnessing higher demand from customers for its portfolio of modern all-flash arrays, especially the C-series capacity flash and ASA block-optimized flash. The new all-flash A-series is also picking up momentum. These enterprise storage products will allow users to boost workloads, including traditional enterprise applications and Gen AI. The company expects the new AFF A-series, along with its C-series and ASA products, to capture further share in the all-flash market.
Also, Keystone’s storage-as-a-service offering is gaining significant traction, with revenues increasing more than 60% year over year in fiscal first-quarter 2025. The company’s All-Flash Array Business’s annualized net revenue run rate was $3.4 billion, up 21% year over year in the same quarter. Total billings rose 12% year over year to $1.45 billion.
Strengthening demand for NetApp’s solutions in flash, block, cloud storage and AI bodes well. In the fiscal first quarter, the company won more than 50 AI and data lake modernization deals. NTAP now expects full-year revenues in the range of $6.48-$6.68 billion, up 5% year over year at the mid-point. Earlier it projected sales in the band of $6.45-$6.65 billion.
The company now forecasts non-GAAP earnings per share for fiscal 2025 to be between $7 and $7.2, up 10% year over year at the mid-point. Earlier, it projected non-GAAP earnings between $6.8 and $7 per share. For fiscal 2025, NetApp continues to expect non-GAAP gross margin in the range of 71-72%. Non-GAAP operating margin is projected in the band of 27-28%, unchanged from the prior view.
However, the uncertain macroeconomic environment and cautious IT spending amid stiff competition in the all-flash business remain concerning.
NTAP’s Healthy Capital Allocation Strategy
NetApp’s cash, cash equivalents and investments were $3.02 billion and long-term debt was $1.244 billion as of July 26, 2024. For the fiscal first quarter, the company generated net cash from operations was $341 million and free cash flow was $300 million (free cash flow margin of 19.5%). Net cash balance provides the required flexibility to pursue any growth strategy, whether through acquisitions or otherwise.
A strong balance sheet helps NetApp to continue its shareholder-friendly initiatives of dividend payouts. The company returned $507 million to its shareholders as dividend payouts and share repurchases in the fiscal first quarter. NTAP has $1 billion worth of shares remaining under its existing authorization.
NTAP also announced a dividend of 52 cents payable on Oct. 23 to shareholders of record as of the close of business on Oct. 4.
Impressive Estimates Activity
The Zacks Consensus Estimate for NTAP’s fiscal 2025 and 2026 revenues is pegged at $6.57 billion and $6.85 billion, respectively, which indicates year-over-year growth of 4.9% and 4.2%.
The Zacks Consensus Estimate for earnings per share for fiscal 2025 and 2026 is pegged at $7.03 and $7.49, respectively, which implies a rise of 8.8% and 6.4% year over year.
The Zacks Consensus Estimate for fiscal 2025 and 2026 EPS has increased 2.5% and 2%, respectively, in the past 60 days, reflecting analysts’ optimism.
NTAP’s Favorable Rank & Growth Score
With healthy fundamentals and strong growth opportunities, this Zacks Rank #2 (Buy) stock appears to be a solid investment option at present.
Apart from a favorable rank, NTAP has a Growth Score of A. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 (Strong Buy) or 2 and a Growth Score of A or B offer solid investment opportunities.
Other Stocks to Consider
Other top-ranked stocks worth consideration in the broader technology space are Manhattan Associates MANH, Adobe ADBE and ANSYS ANSS. While Manhattan Associates sports a Zacks Rank #1 (Strong Buy), Adobe and ANSYS carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MANH’s 2024 EPS is pegged at $4.26, unchanged in the past 30 days. MANH’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 26.6%. The stock has surged 33.9% in the past year.
The Zacks Consensus Estimate for Adobe’s fiscal 2024 EPS is pegged at $18.18, increased 2 cents in the past 30 days. ADBE’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 2.6%. The long-term earnings growth rate is 13.1%. Its shares have declined 2% in the past year.
The Zacks Consensus Estimate for ANSS’ 2024 earnings is pegged at $9.96, unchanged in the past 30 days. ANSS’ earnings beat the Zacks Consensus Estimate in three of the last four quarters while missing the mark once, with the average surprise being 4.8%. Its shares have gained 2% in the past year
Zacks Investment Research
Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.
Life and the stock market are both about expectations, and rising above what is expected is often rewarded, while falling short can come with negative consequences. Investors might want to try to capture stronger returns by finding positive earnings surprises.
Now that we know how important earnings and earnings surprises are, it's time to show investors how to take advantage of these events to boost their returns by utilizing the Zacks Earnings ESP filter.
The Zacks Earnings ESP, Explained
The Zacks Earnings ESP is more formally known as the Expected Surprise Prediction, and it aims to grab the inside track on the latest analyst estimate revisions ahead of a company's report. The idea is relatively intuitive as a newer projection might be based on more complete information.
Now that we understand the basic idea, let's look at how the Expected Surprise Prediction works. The ESP is calculated by comparing the Most Accurate Estimate to the Zacks Consensus Estimate, with the percentage difference between the two giving us the Zacks ESP figure.
In fact, when we combined a Zacks Rank #3 (Hold) or better and a positive Earnings ESP, stocks produced a positive surprise 70% of the time. Perhaps most importantly, using these parameters has helped produce 28.3% annual returns on average, according to our 10 year backtest.
Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.
Should You Consider Badger Meter?
Now that we understand what the ESP is and how beneficial it can be, let's dive into a stock that currently fits the bill. Badger Meter (BMI) earns a #1 (Strong Buy) right now and its Most Accurate Estimate sits at $1.03 a share, just 30 days from its upcoming earnings release on October 17, 2024.
Badger Meter's Earnings ESP sits at +2.2%, which, as explained above, is calculated by taking the percentage difference between the $1.03 Most Accurate Estimate and the Zacks Consensus Estimate of $1.01. BMI is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
BMI is part of a big group of Computer and Technology stocks that boast a positive ESP, and investors may want to take a look at NetApp (NTAP) as well.
NetApp is a Zacks Rank #2 (Buy) stock, and is getting ready to report earnings on November 26, 2024. NTAP's Most Accurate Estimate sits at $1.79 a share 70 days from its next earnings release.
For NetApp, the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $1.77 is +1.26%.
BMI and NTAP's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.
Find Stocks to Buy or Sell Before They're Reported
Use the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>
Zacks Investment Research
POMPANO BEACH, FL / ACCESSWIRE / September 16, 2024 / Xcyte Digital Corp. (TSXV:XCYT) ("Xcyte" or the "Company"), a trusted global events technology company, specializing in next-generation event solutions, announces that at the Company's annual general and special meeting held on August 28, 2024, the disinterested shareholders of the Company approved certain amendments to the Company's omnibus equity incentive plan (the "Plan") to, among other things:
change the Plan from a "rolling" 10% plan to a "fixed" plan, pursuant to which the maximum number of subordinate voting shares (each, a "Share") reserved for issuance pursuant to awards granted under the Plan will be fixed at a maximum of 17,754,000, representing 20% of the issued and outstanding Shares as at July 22, 2024;
describe, in more detail, the "cashless exercise" mechanics under the Plan, to reflect that the board of directors of the Company (the "Board") may, on terms established by it in its sole discretion and in accordance with policies of the TSX Venture Exchange (the "TSXV"), permit a stock option (an "Option") to be exercised by way of a "cashless exercise" basis, as further provided in the Plan, including, if the Company is listed on the TSXV, Section 4.8(d)(i) of TSXV Policy 4.4, which provides that: (a) the Company may have an arrangement with a brokerage firm pursuant to which the brokerage firm will loan money to a Participant (as defined in the Plan) to purchase the Shares underlying the Options, (b) the brokerage firm then sells a sufficient number of Shares to cover the exercise price of the Options in order to repay the loan made to the Participant, and (c) the brokerage firm receives an equivalent number of Shares from the exercise of the Options and the Participant then receives the balance of the Shares or the cash proceeds from the balance of such Shares;
describe, in more detail, the "net exercise" mechanics under the Plan, to reflect that that the Board may, in its sole discretion and in accordance with TSXV policies (including, if the Company is listed on the TSXV, Section 4.8(d)(ii) of TSXV Policy 4.4), permit Options held by a Participant who is not an Investor Relations Service Provider (as defined in the Plan) to be exercised on a "net exercise" basis such that the Participant receives only the number of Shares underlying such Options as is equal to the quotient obtained by dividing (a) the product of the number of Options being exercised multiplied by the difference between: (i) the volume weighted average trading price of the Shares on the TSXV, calculated by dividing the total value by the total volume of the Shares traded for the five trading days immediately preceding the exercise of the subject Option (the "VWAP"), and (ii) the exercise price of such Options; by (b) the VWAP;
to reflect that the latest date by which a vested Option held by a Participant that departs the Company pursuant to a termination without cause, resignation, retirement, personal disability or death (each as further described in the Plan) may be exercised will be 12 months from the date of ceasing to be an Eligible Participant (as defined in the Plan); and
to provide that, except as otherwise provided in the Plan, the Plan must only be approved by Shareholders and the TSXV when the Plan is amended, including to increase the maximum number of Shares reserved for issuance, as opposed to annually as was previously required because the Plan was a "rolling" plan.
Director Paul Barbeau has been granted today, an aggregate of 100,000 stock options (the "Options"), each of which will be exercisable into one Share at a price of $0.25 per Share until the earlier of (i) September 16, 2029 and (ii) 90 days after he ceases to provide services to the Company or any of its subsidiaries in any capacity, whether as a director, officer, employee, independent contractor or otherwise
About Xcyte Digital Corp.
Xcyte Digital (TSXV:XCYT) is a trusted global events technology company, specializing in next-generation applications for physical, hybrid, virtual, immersive, and phone-based events. Combining proprietary technology with a robust partner ecosystem, Xcyte offers both do-it-yourself and managed services, ensuring secure and scalable solutions worldwide. Thousands of clients, from innovative startups to major corporations, rely on Xcyte's cost-effective solutions to meet their event needs. Xcyte Digital is headquartered in Canada and the USA, with operations across the globe. Visit us at xcytedigital.com.
To receive Xcyte investor news, please sign up at https://xcytedigital.com/investors/
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information
Randy SelmanChief Executive Officer and Directorinvestment@xcytedigital.com (647) 777 7501
Nikhil ThadaniInvestor Relationsnik@sophiccapital.com (647) 777 7501SOURCE: Xcyte Digital Corp.
View the original press release on accesswire.comThe most recent trading session ended with Western Digital (WDC) standing at $64.09, reflecting a -1.43% shift from the previouse trading day's closing. The stock's change was less than the S&P 500's daily gain of 0.13%. At the same time, the Dow added 0.55%, and the tech-heavy Nasdaq lost 0.52%.
The maker of hard drives for businesses and personal computers's stock has climbed by 1.51% in the past month, falling short of the Computer and Technology sector's gain of 1.56% and the S&P 500's gain of 3.67%.
Investors will be eagerly watching for the performance of Western Digital in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.72, reflecting a 197.73% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $4.11 billion, up 49.5% from the year-ago period.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.35 per share and revenue of $17.13 billion, which would represent changes of +4275% and +31.77%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Western Digital. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the company's business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 17.02% downward. Western Digital presently features a Zacks Rank of #3 (Hold).
Looking at its valuation, Western Digital is holding a Forward P/E ratio of 7.78. This valuation marks a discount compared to its industry's average Forward P/E of 13.65.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 37% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
Zacks Investment Research
Wall Street has resumed its rally after a hiccup earlier this month. September has been one of the worst months for stocks, but all three major indexes this year seem to be snapping the tradition.
The rally is once again being fueled by tech stocks that have been on a dream run since 2023. With the Federal Reserve’s rate cut on the anvil, tech stocks are set to get further and drive the market rally. It would thus be ideal to invest in tech stocks such as Adobe Inc. ADBE, NetApp, Inc. NTAP, Fortive Corporation FTV and Arista Networks, Inc., ANET with solid growth potential for this year.
S&P 500, Nasdaq Stocks Boost Rally
On Friday, the S&P 500 and the Nasdaq recorded their fifth straight session of gains, as investors rushed to buy mega-cap tech and semiconductors stocks. The S&P gained 0.5% to close at 5,626.02 points. The index is now less than 1% from its all-time high recorded in July.
The tech-heavy Nasdaq rose 07% to close at 17,638. 98 points. The S&P 500 and the Nasdaq have gained 18.6% and 19.8%, respectively.
A softer-than-expected August jobs report unsettled markets at the beginning of the month. Also, inflation data showed that the consumer price index (CPI) increased slightly by 0.2% in August, which somewhat dented investors’ sentiment.
However, investors have since regained their confidence as they took the positives from the CPI report that showed the inflation rate falling to its lowest level since February 2021. Market participants are now looking forward to the Federal Reserve’s rate cut, which is likely to happen this week.
Tech Stocks Boosting Market Rally Led by AI
The Nasdaq and the S&P 500’s recent rally is being fueled by tech stocks. Technology and semiconductor stocks have largely been responsible for the broader market rally since 2023. The Technology Select Sector SPDR (XLK) has gained 14.5% year to date.
One of the major reasons behind the rally is the enthusiasm surrounding artificial intelligence (AI), especially generative AI, spearheaded by the industry darling NVIDIA Corporation NVDA.
Experts think AI has huge potential that hasn't been fully tapped into yet. NVIDIA's impressive achievements over the past year have encouraged many tech companies to explore AI's possibilities to secure lasting business benefits.
The advancement of smart devices is key in this area, as they need robust computing and learning abilities for tasks such as face detection, image recognition and video analysis. These functions demand significant processing power, speed, memory, energy efficiency, and advanced graphics processors, which in turn benefit the semiconductor industry.
Fed Set to Cut Rate in Upcoming FOMC Meeting
Although the latest inflation report has crushed hopes of a 50-basis point rate cut, market participants are confident that the Federal Reserve will go for a 25-basis point rate cut in its Sept. 17-18 meeting.
Any size of rate cut bodes well for the broader economy. Lower interest rates generally benefit growth assets by decreasing the opportunity cost of holding non-yielding assets, such as technology and semiconductor stocks.
Markets have so far tried to defy the stock market sluggishness in September. Moreover, the fourth quarter is about to begin, which is usually the best quarter of the year. Since 1950, the S&P has jumped more than 4% in the final three months of the year, with this rise occurring 80% of the time.
4 Tech Stocks to Buy Ahed of Fed’s Rate Cuts
We have chosen four top tech stocks from the S&P 500 that have seen positive earnings estimate revisions in the last 60 days and have strong potential for 2024. Each of the stocks has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Adobe Inc.
Adobe Inc. is one of the largest software companies in the world. ADBE picks up licensing fees from customers, which form the bulk of its revenue. Adobe also offers technical support and education, which account for the balance.
Adobe has an expected earnings growth rate of 13.1% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.2% over the past 60 days. ADBE presently has a Zacks Rank #2.
NetApp, Inc.
NetApp, Inc. provides enterprise storage as well as data management software and hardware products and services. NTAP assists enterprises in managing multiple cloud environments, adopting next-generation technologies like AI, Kubernetes, and contemporary databases. It also helps in navigating the complexity brought about by the quick development of data and cloud usage.
NetApp has an expected earnings growth rate of 8.8% for the current year. The Zacks Consensus Estimate for current-year earnings improved 2.5% over the past 60 days. NTAP presently carries a Zacks Rank #2.
Fortive Corporation
Fortive Corporation is a diversified industrial growth company. FTV provides essential technologies for connected workflow solutions on a global basis.
Fortive Corporation has an expected earnings growth rate of 11.4% for the current year. The Zacks Consensus Estimate for current-year earnings improved 0.3% over the past 60 days. FTV presently carries a Zacks Rank #2.
Arista Networks, Inc.
Arista Networks, Inc. is engaged in providing cloud networking solutions for data centers and cloud computing environments. ANET offers 10/25/40/50/100 Gigabit Ethernet switches and routers optimized for the next-generation data center networks. Arista uses multiple silicon architectures across its products.
Arista Networks’ expected earnings growth rate for the current year is 18.7%. The Zacks Consensus Estimate for current-year earnings improved 3.9% over the past 60 days. ANET presently has a Zacks Rank #2.
Zacks Investment Research
Seagate Technology Holdings plc’s STX stock closed the last trading session at $102.13, 10% below its 52-week high of $113.57, reached on July 24, 2024.
Over the past six months, the stock has appreciated 19.6%, outperforming the S&P 500 composite and the sub-industry’s growth of 9.3% and 8.9%, respectively. It has also outperformed its peers. Over the same time frame, NetApp NTAP and Western Digital WDC have posted gains of 15.3% and 9.6%, respectively, while Pure Storage PSTG shares have lost 3.3%.
Solid financial performance is buoying the stock’s trajectory. The company is experiencing increasing demand for its mass capacity solutions. STX’s earnings beat estimates in three of the last four quarters, delivering an average surprise of 80.9%.
Reflecting the positive sentiment around STX, the Zacks Consensus Estimate for earnings per share has seen upward revisions. In the past 60 days, analysts have increased their estimates for the current and next quarters by 38.8% and 33.3% to $1.43 and $1.80 per share, respectively.
Momentum in Mass Capacity Demand Makes us Bullish on STX
Momentum in mass capacity solutions attributed to stronger nearline cloud demand remains a tailwind for Seagate. Strengthening the global cloud demand environment is fueling demand for nearline capacity demand. In the last reported quarter, nearline cloud revenues more than doubled year over year, owing to higher traditional cloud computing workloads and new AI deployments. STX expects this momentum to continue in fiscal 2025.
Overall mass capacity revenues surged 46% year over year to $1.437 billion in the last reported quarter. Sequentially, mass capacity revenues were up 22%.
Mass capacity exabyte shipments represent more than 90% of total exabyte shipments. The company shipped 103.9 exabytes for the mass-capacity storage market (including nearline, video and image applications and network-attached storage). This recorded a year-over-year increase of 38% in exabyte shipments and 17% sequentially.
The improving metrics signify that things are probably looking brighter for STX after a period of lackluster performance. Driven by incremental improvements in mass capacity demand, management anticipates first-quarter fiscal 2025 revenues to be $2.10 billion (+/- $150 million).
STX’s Mozaic Platform: Another Catalyst
Seagate’s launch of the Mozaic 3+ hard drive platform, featuring Heat-Assisted Magnetic Recording (HAMR) technology, is also expected to aid in capturing a greater share of the mass capacity storage solutions market.
Seagate expects HAMR to aid in exploiting megatrends like AI and machine learning, which will drive long-term demand for cost-effective mass-capacity storage solutions. The company has completed multiple qualifications for its 24TB CMR / 28TB SMR drives. It expects to begin volume shipments in the first quarter of fiscal 2025.
It shipped a small volume of Mozaic 3+ for revenues to non-cloud customers in the fiscal fourth quarter. It anticipates completing the qualification with the lead CSP customer and starting multiple qualifications with the cloud customers of the United States and China in the current quarter. It anticipates a larger volume ramp from mid-calendar 2025.
STX’s Improving Margin Performance & Solid Outlook
Higher exabyte demand trends, ongoing price adjustments and continued cost containment efforts are driving the margin performance.
In the last reported quarter, non-GAAP gross margin increased to 30.9% from 19.5% in the prior-year quarter. Non-GAAP income from operations totaled $327 million, up from $55 million a year ago. Non-GAAP operating margin increased to 17.3% from 3.4% in the year-earlier quarter.
Going ahead, STX expects gross margin is expected to benefit from a higher mix of mass capacity revenues and ongoing pricing actions. At the midpoint of the revenue guidance, management expects the non-GAAP operating margin to grow in the high-teens percentage range of revenues. The non-GAAP operating expenses are expected to be $270 million.
STX’s Strong Technical Indicators & Attractive Valuation
Technical indicators are also supportive of STX’s strong performance. The stock is trading above its 100-day and 200-day moving averages, indicating upward momentum and price stability. This technical strength reflects positive market perception and confidence in its growth prospects.
Seagate presents a compelling investment opportunity with its attractive forward 12-month price-to-sales ratio of 2.2X, significantly lower than the industry average of 6.3X observed over the past three years. Its forward 12-month price-to-sales ratio positions Seagate as a value-driven choice with significant upside potential.
To Buy or Not to Buy STX?
Increasing demand for mass capacity solutions, strategic initiatives, attractive valuation and positive estimate revisions bode well for STX. Given the recent pullback from its 52-week high, investors have an opportunity to invest in this Zacks Rank #1 (Strong Buy) stock. You can see the complete list of today’s Zacks #1 Rank stocks here.
Apart from a favorable rank, STX has a Growth Score of B. Per Zacks’ proprietary methodology, stocks with a combination of a Zacks Rank #1 or 2 (Buy) and a Growth Score of A or B offer solid investment opportunities.
The Zacks Consensus Estimate for fiscal 2025 implies a 42.8% year-over-year increase in sales and a 474% rise in EPS, signaling strong growth potential ahead.
Zacks Investment Research
White Label
Data API
Web Plug-ins
Poster Maker
Affiliate Program
The risk of loss in trading financial instruments such as stocks, FX, commodities, futures, bonds, ETFs and crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No decision to invest should be made without thoroughly conducting due diligence by yourself or consulting with your financial advisors. Our web content might not suit you since we don't know your financial conditions and investment needs. Our financial information might have latency or contain inaccuracy, so you should be fully responsible for any of your trading and investment decisions. The company will not be responsible for your capital loss.
Without getting permission from the website, you are not allowed to copy the website's graphics, texts, or trademarks. Intellectual property rights in the content or data incorporated into this website belong to its providers and exchange merchants.