Seagate: Outperforming Tech While Still Undervalued Today

Danil SeredaInvesting Group LeaderFollow5ShareSavePlay(14min)CommentsSummarySeagate Technology Holdings remains a 'Buy' as HAMR technology drives margin expansion and establishes a widening technological moat.STX's Q2 2026 results showed 21.5% YoY revenue growth, 42.2% adjusted gross margin, and a 53% YoY EPS increase, supporting strong post-earnings repricing.Ramp-up of Mozaic 3+ and 4+ platforms positions STX for further margin gains as HAMR shipments surpass legacy drives by 2H 2026.My valuation model indicates STX is 40%+ undervalued, with a potential 43% upside to $545.6/share, despite cyclical and competitive risks.Looking for more investing ideas like this one? Get them exclusively at Beyond the Wall Investing. Learn More » marshmallow99/iStock via Getty Images I Keep My "Buy" On STX After Its Rally I wrote about Seagate Technology Holdings (STX) only once, in January 2026, rating the stock as a "Buy" because it seemed to me at theThis article was written byDanil Sereda14.74K FollowersFollowDaniel Sereda is chief investment analyst at a family office whose investments span continents and diverse asset classes. This requires him to navigate through a plethora of information on a daily basis. His expertise is in filtering this wealth of data to extract the most critical ideas. He runs the investing group Beyond the Wall Investing in which he provides access to the same information that institutional market participants prioritize in their analysis. Learn more.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in STX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.