Based on the aggregated intelligence of 170,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, hard drive specialist Seagate Technology
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.
|Headquarters (Founded)||Dublin, Ireland (1979)|
|Market Cap||$5.89 billion|
|Industry||Data storage devices|
|Trailing-12-Month Revenue||$11.1 billion|
Chairman/CEO Stephen Luczo
CFO Patrick O'Malley
|Return on Capital (Average, Past 3 Years)||12%|
|Cash/Debt||$2.81 billion / $2.91 billion|
Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.
On CAPS, 93% of the 1,180 members who have rated Seagate believe the stock will outperform the S&P 500 going forward. These bulls include All-Star TMFDeej, who is ranked in the top 1% of our community, and Sambar2pi.
In early January, TMFDeej tapped Seagate's valuation, which is even lower today, as too attractive to pass up: "Is this the best business in the world? No. But it sure is cheap. Certainly cheap enough to justify buying it at this level."
In fact, Seagate currently sports a cheapish forward P/E of 6.9. That represents a discount to its main hard drive foe Western Digital (9.1), as well as solid-state drive threats Intel (9.2) and STEC (10.8).
CAPS member Sambar2pi expands on the outperform argument:
Fears of technological obsolescence are completely irrational; the transition to solid-state will remain slow enough for Seagate to properly transition itself in that direction, as they have already begun to. Not to mention they have world-class expertise in the technologies that accompany both hdd and solid-state (error-correction, controls, etc.) that a potential solid-state upstart would lack. Add that to good management since [Luczo] returned as CEO, and I say the stock will be way up if it ever gets valued properly.
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Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Motley Fool Options has recommended a diagonal call position on Intel, which is a Motley Fool Inside Value pick. The Fool owns shares of Intel and Western Digital and has bought calls on Intel. Try any of our Foolish newsletter services free for 30 days.
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