Best Stocks of the Bull Market #6: Seagate Technology (STX)
Market Capitalization: $16.5 billion
Total Return Since 3/9/2009: 1,702%
Seagate Technology (STX) is one of the leading hard disk drive manufacturers in the world. And while it has remained dominant and has surged from the bear market lows, STX has faced its share of detractors over the last few years.
The convergence of a “post-PC” age with a big slowdown in corporate IT spending led to ugly results and worse forecasts for STX about five years ago. However, although Seagate posted a big loss to start 2009, the company restructured and adjusted nimbly to the new market environment.
Now, revenue is actually well up from 2009 levels despite weak PC sales thanks to Seagate branching out into other areas of the electronics memory market and even cloud computing. Better margins and decent sales have lifted the stock, proving the bears wrong and delivering big returns to STX shareholders.