Historically, tumultuous times offer some of the best opportunities to invest in killer stocks, and the market's recent mess surely qualifies. And though hard-drive maker Seagate Technology (Nasdaq: STX ) is well on its way to recovering from the recession, many investors expect even better times ahead.
In our Motley Fool CAPS community, 92% of the 1,007 investors rating the company are bullish, so there's no shortage of reasons why Seagate Technology will thrive, three of which I've highlighted below.
But here at The Motley Fool, we're all for looking at both the good and the bad sides of an investment. Once you're done with this article, you can read the case against the stock, weigh in with your own comments below, or rate Seagate Technology yourself in CAPS.
1. Growing demand
Seagate could hardly keep up with demand in its fiscal second quarter, and according to research firm Gartner, PC sales are expected to stay strong this year. This is great news for top PC makers like Hewlett-Packard (NYSE: HPQ ) and Dell (Nasdaq: DELL ) , but many suppliers like Seagate and DRAM maker Micron Technology (NYSE: MU ) stand to benefit as well. With Seagate's strong second-quarter earnings performance and rising demand, some CAPS members look for Seagate to continue to deliver strong returns.
2. Top hard-drive maker
While HP still holds the top spot in the PC rankings over Acer and Dell, Seagate remained the world's largest hard-drive maker in the fourth quarter, holding a 31% share of the market, with Western Digital (NYSE: WDC ) coming in a close second, according to research firm iSuppli. Because HP expects to keep growing this year, many CAPS members expect that Seagate will maintain its top rank as it takes advantage of increasing demand.
3. Positive momentum
Seagate's shares have put in an outstanding performance in the past year, and some CAPS members see the same trends continuing in the coming quarters as the economy shows more signs of improvement. Solid earnings from Intel (Nasdaq: INTC ) and an anticipated strong showing from IBM (NYSE: IBM ) suggest an increase in spending, and some investors see room for Seagate to run.