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Seagate Technology Holdings plc (NASDAQ:STX) was one of the stocks Jim Cramer looked at during Mad Money’s episode. Cramer highlighted the company’s fall and impressive rise in earnings, as he commented:
The storage stocks, Sandisk, Western Digital, and Seagate, being the big three, just don’t know when to quit. They’ve been on insane runs because historically, we’re used to that industry putting up okay growth with fairly inconsistent earnings. Their stocks always had very low price-to-earnings multiples because nobody pays up for that kind of business, too boom, too bust. Suddenly, though, we’re building data centers all over the place, and these are warehouses full of servers that need colossal amounts of memory and data storage. That’s changed the game.
Let me give you just one example. Seagate had episodic earnings for years. In fiscal 2023, the 12-month period that ended in June 2023, they were barely profitable, making just 19 cents in non-GAAP earnings per share. In fiscal 2024, which ended in June, 2024, they made $1.29 per share. In fiscal 2025, they made $8.10 per year. Now, Seagate’s projected to make nearly $15 this year, fiscal 2026, then around $26 next year and $38 in fiscal 2028, which ends in June 2028. They’re practically printing money because there’s not enough storage to go around, so they can raise prices with impunity.
Seagate Technology Holdings plc (NASDAQ:STX) makes hard drives, solid-state drives, and storage solutions for personal, gaming, and business use.
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