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Seagate Technology Holdings PLC (NASDAQ:STX) shares traded higher Monday ahead of the company’s scheduled Oct. 27 earnings report, with Wall Street expecting EPS of $7.42 on revenue of $4.14 billion.

The company also announced a storage interoperability milestone after Broadcom Inc. (NASDAQ:AVGO) approved Seagate’s HAMR-based Mozaic drives as the first and only SMR drives for its host bus adapter, while Microsoft Corp. (NASDAQ:MSFT) Azure Storage qualified the configuration for hyperscale deployments.

• Seagate Technology Hldgs shares are powering higher. What’s behind STX gains?

Seagate Storage Push Gains

The qualification provides a hyperscale proof point for Seagate’s high-capacity storage technology as AI and cloud workloads drive growing storage requirements.

The configuration gives data centers a supported way to deploy and manage high-capacity Seagate drives, with HAMR increasing storage density and SMR packing data tracks more tightly to boost usable capacity.

“By pairing Seagate HAMR + SMR storage technology with Broadcom’s connectivity infrastructure, we’re helping make high-capacity SMR storage more accessible and easier to deploy as AI and cloud data demands grow,” said Jason Feist, Seagate’s senior vice president, Cloud Business.

Microsoft’s Pablo Ziperovich said the qualification supports large-scale deployments while “enabling greater storage density at a similar cost and power envelope.”

Analysts Split Ahead of Earnings

The storage announcement comes one day before Seagate’s scheduled Oct. 27 earnings report.

Wall Street expects EPS of $7.42, up from $2.61 a year earlier, on revenue of $4.14 billion versus $2.63 billion last year. Seagate trades at a price-to-earnings ratio of 45.4 times.

The stock carries a Buy consensus rating and an average consensus price forecast of $892.

Cantor Fitzgerald maintained an Overweight rating Monday but lowered its price target to $1,000 from $1,300.

Bank of America Securities maintained Buy and raised its target to $1,200 from $1,150 on Oct. 21, while Morgan Stanley raised its price target to $1,200 and maintained Overweight on Oct. 20.

Technical Picture Remains Under Pressure

Seagate remains under short-term technical pressure, trading 17.7% below its 20-day SMA, 22.7% below its 50-day SMA, and 25.6% below its 100-day SMA.

The RSI stands at 31.17, near oversold territory, while MACD remains below its signal line, pointing to weak momentum.

Despite the near-term weakness, Seagate shares have gained 176.56% over the past 12 months. The stock sits at 45.7% of its 52-week range.

Benzinga Edge: Seagate Scores High Growth, Weak Value

Benzinga Edge scorecard for Seagate Technology highlighting its strengths and weaknesses compared to the broader market:

• Momentum: Bullish (Score: 96.44) — The stock’s longer-run tape is still acting like a leader despite the recent pullback versus key moving averages.
• Value: Bearish (Score: 1.3) — The market is pricing in a lot of optimism, leaving less room for error if growth expectations cool.
• Growth: Bullish (Score: 99.82) — The profile implies investors are paying up for expected expansion, consistent with AI/cloud infrastructure narratives.

Seagate’s strong Growth and Momentum scores contrast with weak Value, putting added focus on execution and forward guidance.

STX Stock Price Activity: Seagate Technology Hldgs shares were up 3.94% at $655.36 at the time of publication on Monday, according to Benzinga Pro data.

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