#3 - Seagate Technology (NASDAQ:STX)
Seagate Technology (NASDAQ: STX) - Seagate has a P/E ratio of 8.08 with an impressive 5.43% dividend yield that is backed by a strong free cash flow of nearly $1.5 billion that will be more than enough to make that dividend sustainable (the dividend currently requires just under $550 million to pay at current levels). But the stocks on this list are supposed to be primed for growth, and despite some softness in its core hard disk drive business, the company managed to take cost-cutting measures that turned a 4% revenue decline in 2017 into an 82% increase in earnings per share. Looking ahead to 2019, high-capacity drives are still seeing strong demand and STX looks to capture 50% market share of the 10TB and 12TB markets by the end of the year. The company is also successfully shifting investment into other areas such as cloud storage. Their 2015 acquisition of Dot Hill Systems is starting to pay off.
About Seagate Technology
Seagate Technology Holdings plc provides data storage technology and solutions in Singapore, the United States, the Netherlands, and internationally. It provides mass capacity storage products, including enterprise nearline hard disk drives (HDDs), enterprise nearline solid state drives (SSDs), enterprise nearline systems, video and image HDDs, and network-attached storage drives.
Read More - Current Price
- $87.50
- Consensus Rating
- Hold
- Ratings Breakdown
- 8 Buy Ratings, 7 Hold Ratings, 2 Sell Ratings.
- Consensus Price Target
- $94.53 (8.0% Upside)
