We recently compiled a list of the 10 Stocks That Became Analyst Favorites This Week. In this article, we are going to take a look at where Seagate Technology Holdings plc (NASDAQ:STX) stands against the other analysts favorites.

US stocks registered a green day on Tuesday with the Dow surging up 538 points to end 1.24% higher. S&P 500 and Nasdaq also posted gains of 0.88% and 0.64% respectively, showcasing the strength of the American economy.

As for individual stocks, analysts continue to evaluate businesses based on any public information they can gather. Some of these insights turn into stock upgrades or downgrades while others reiterate the positive or negative outlook on the stocks. We came up with a similar list of stocks that have received analyst approval this week.

To come up with the list of 10 stocks moving on analyst optimism, we considered stocks with a market cap of at least $10 billion.

A technician configuring a network-attached storage drive.

Seagate Technology Holdings plc (NASDAQ:STX)

Seagate Technology Holdings plc is a data storage technology and infrastructure solutions provider. It provides video and image HDDs, enterprise nearline hard disk drivers, and network-attached storage drivers among other products. Seagate has performed in line with the S&P 500 since 2020, but it has the potential to outperform in 2025.

The company’s Q1 earnings for FY2025 exceeded estimates indicating it is in a strong financial position. It generated revenue worth $2.17 billion while net income came in at $305 million. Analysts are optimistic as they foresee a $7.06 billion increase in revenue in the next three quarters while earnings per share are expected to be $1.87, $1.92, and $2.16 in the next three quarters respectively.

The positivity is likely to continue in the future as $10.45 billion in revenue is expected in FY2026 with an EPS of $9.27. Though the stock performance was not good in the second half of the past year, it has already started recovering. The one-month returns of 15% show the current optimism among analysts and investors, with Morgan Stanley picking the stock in its Top Picks list in the IT Hardware sector.

Overall STX ranks 10th on our list of the stocks that became analyst favorites this week. While we acknowledge the potential of STX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as STX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

 

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Disclosure: None. This article was originally published at Insider Monkey.