A strong stock as of late has been Seagate (STX Quick QuoteSTX - Free Report) . Shares have been marching higher, with the stock up 36.9% over the past month. The stock hit a new 52-week high of $234.12 in the previous session. Seagate has gained 165.5% since the start of the year compared to the 21.6% gain for the Zacks Computer and Technology sector and the 43.6% return for the Zacks Computer - Integrated Systems industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 29, 2025, Seagate reported EPS of $2.59 versus consensus estimate of $2.46.

For the current fiscal year, Seagate is expected to post earnings of $10.44 per share on $10.17 in revenues. This represents a 28.89% change in EPS on a 11.82% change in revenues. For the next fiscal year, the company is expected to earn $13.35 per share on $11.12 in revenues. This represents a year-over-year change of 27.93% and 9.27%, respectively.

Valuation Metrics

While Seagate has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.

On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.

Seagate has a Value Score of C. The stock's Growth and Momentum Scores are A and D, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 22X current fiscal year EPS estimates, which is not in-line with the peer industry average of 23.6X. On a trailing cash flow basis, the stock currently trades at 27.1X versus its peer group's average of 25.3X. Additionally, the stock has a PEG ratio of 0.92. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.

Zacks Rank

We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Seagate currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.

Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Seagate passes the test. Thus, it seems as though Seagate shares could still be poised for more gains ahead.

How Does STX Stack Up to the Competition?

Shares of STX have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Micron Technology, Inc. (MU Quick QuoteMU - Free Report) . MU has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of A, and a Momentum Score of A.

Earnings were strong last quarter. Micron Technology, Inc. beat our consensus estimate by 5.94%, and for the current fiscal year, MU is expected to post earnings of $16.58 per share on revenue of $53.61 billion.

Shares of Micron Technology, Inc. have gained 37.7% over the past month, and currently trade at a forward P/E of 9.88X and a P/CF of 10.78X.

The Computer - Integrated Systems industry is in the top 15% of all the industries we have in our universe, so it looks like there are some nice tailwinds for STX and MU, even beyond their own solid fundamental situation.