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5-Star Stocks Poised to Pop: Seagate Technology

By Brian D. Pacampara, CFA - Updated Apr 5, 2017 at 8:06PM

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Market-trouncing returns could be written in this 5-Star.

Based on the aggregated intelligence of 120,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, hard-drive maker Seagate Technology (NASDAQ:STX) has earned a coveted five-star ranking. Our data has shown that five-star stocks outperform the market by a significant margin; conversely, one-star stocks have woefully lagged the market average.

With that in mind, let's take a closer look at Seagate's business, and see what CAPS investors are saying about the stock right now.

Seagate facts

Headquarters (founded)

George Town, Cayman Islands (1979)

Market Cap

$2.15 billion


Data Storage Devices

TTM Revenue

$12.46 billion


CEO William Watkins (since 2004)
COO David Wickersham (since 2004)

Return on Equity (average last three years)


Dividend Yield



Western Digital (NYSE:WDC),

CAPS members bullish on STX also bullish on


CAPS members bearish on STX also bearish on

Research In Motion (NASDAQ:RIMM),
Whole Foods Market (NASDAQ:WFMI)

Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.

Over on CAPS, fully 122 of the 139 All-Star members who have rated Seagate -- some 88% -- believe the stock will outperform the S&P 500 going forward. These bulls include jdawg1847 and JTShideler, both of whom are ranked in the top 5% of our community.

Late last month, jdawg1847 ran down a few of the stock's bullish stats: "Largest maker of computer hard drives yields 10%, has a $9 book value and $2.5 per share in cash."

In a more recent pitch from just yesterday, JTShideler echoes that sentiment, tapping Seagate as a solid, cash-rich pick:

Picking Seagate as a longterm value play trying to juice my returns by picking stocks with low valuations, good financials and great dividends. I figure with a P/E of 2.6 and trading below book value, plenty of cash on hand, free cash flow and a nice 10% dividend yield I can afford to wait it out until Mr. Market comes back to his senses.

What do you think about Seagate, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 120,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Apple and Whole Foods are Motley Fool Stock Advisor picks. Intel is an Inside Value recommendation. The Fool owns shares of Intel. The Fool's disclosure policy always gets a perfect score.

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Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
$172.10 (2.14%) $3.61
Intel Corporation Stock Quote
Intel Corporation
$36.11 (1.46%) $0.52
Western Digital Corporation Stock Quote
Western Digital Corporation
$50.67 (3.28%) $1.61
Whole Foods Market, Inc. Stock Quote
Whole Foods Market, Inc.
BlackBerry Stock Quote
$6.78 (0.59%) $0.04

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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