NASDAQ 100 pick of the day -- 10/13 -- STX - Seagate Technologies

Seagate Technology (STX) is the worldwide leader in the design, manufacture and marketing of hard disc drives, providing products for a wide-range of applications, including Enterprise, Desktop, Mobile Computing, Consumer Electronics and Branded Solutions. Seagate's business model leverages technology leadership and world-class manufacturing to deliver industry-leading innovation and quality to its global customers, and to be the low cost producer in all markets in which it participates. The company is committed to providing award- winning products, customer support and reliability to meet the world's growing demand for information storage.

Recent competition from flash memory devices has caused some pricing erosion but with new products in the pipeline STX should be alright in the long run,

Recent price momentum has seen a 16.84% price increase last month with the stock hitting 9 new highs in the last 20 sessions.  The price recently turned upward and Barchart has a 100% short term buy signal with the stock trading around 12.62 which is above its 50 day moving average of 11.34.  The 14 day Relative Strength Index is 63.35%

Wall Street brokerages have 14 buy and 12 hold reports publicised to their clients and estimate that sales will be up by 4.10% next year.  Earnings per share is the real issue with a 14.60% increase expected next year followed by an annual 5 year EPS growth rate of 10.50%,

General investor sentiment is high and wide with the CAPS members on Motley Fool voting 1,089 to 72 that the stock will beat the market.  The more experienced All Stars agree 420 to 13.  Fool notes that recent articles have been positive 21 to 2.

Points to consider:

• 100% Barchart short term buy signal
• 9 new highs in the last 20 sessions
• 16.84% price increase last month
• Relative Strength Index 63.35%
• 14 buy recommendations from Wall Street brokerages
• Very positive investor sentiment

Jim Van Meerten is an advisor to Marketocracy Capital Management who uses his model portfolios not only to manage their mutual funds but also their clients Separately Managed Accounts. You can read his blogs about those model portfolios and investing here and on Barchart Portfolio Blogs. Please leave a comment below or email  jimvanmeerten@gmail.com


Disclosure: Jim Van Meerten through Marketocracy Capital Management has an interest in the stocks mentioned in this blog.