Cheap Tech Stocks: Seagate Technology
Seagate (STX) is a disk drive company that many think is past its prime at first glance. But given the 85% run in the last 12 months, STX stock clearly isn’t dead yet.
Furthermore, earnings continue to grow … and even after this big run, shares are very reasonably priced compared to other tech stocks with a forward price-to-earnings ratio of about 10.
Throw in a sustainable dividend that yields 3% and you’ve got a pretty good long-term tech stock.
The disk drive industry can be volatile, but the bottom line is that Seagate is still cranking out a lot of hardware. After all, though “the cloud” is en vogue, it’s a painful reality that information has to live somewhere, and Seagate drives are a big part of data centers as well as consumer devices.
In the age of big data, STX stock is a good play going forward. And given its cheap valuation and decent dividend, investors can have confidence even after a run-up in shares across 2013.