Shares of Seagate (STX Quick QuoteSTX - Free Report) have been strong performers lately, with the stock up 34.5% over the past month. The stock hit a new 52-week high of $459.41 in the previous session. Seagate has gained 61.4% since the start of the year compared to the 0.3% move for the Zacks Computer and Technology sector and the 21.2% return for the Zacks Computer - Integrated Systems industry.

What's Driving the Outperformance?

The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 27, 2026, Seagate reported EPS of $3.11 versus consensus estimate of $2.83.

For the current fiscal year, Seagate is expected to post earnings of $12.63 per share on $11.34 in revenues. This represents a 55.93% change in EPS on a 24.62% change in revenues. For the next fiscal year, the company is expected to earn $18.89 per share on $13.87 in revenues. This represents a year-over-year change of 49.52% and 22.33%, respectively.

Valuation Metrics

While Seagate has moved to its 52-week high over the past few weeks, 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 they provide investors with an additional way to sort 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 F. The stock's Growth and Momentum Scores are A and A, respectively, giving the company a VGM Score of B.

In terms of its value breakdown, the stock currently trades at 35.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 24.2X. On a trailing cash flow basis, the stock currently trades at 52.5X versus its peer group's average of 35X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Seagate currently has a Zacks Rank of #1 (Strong Buy) thanks to favorable earnings estimate revisions from covering analysts.

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 meets the list of requirements. Thus, it seems as though Seagate shares could have a bit more room to run in the near term.

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 D, a Growth Score of A, and a Momentum Score of C.

Earnings were strong last quarter. Micron Technology, Inc. beat our consensus estimate by 22.25%, and for the current fiscal year, MU is expected to post earnings of $32.90 per share on revenue of $73.3 billion.

Shares of Micron Technology, Inc. have gained 22.1% over the past month, and currently trade at a forward P/E of 12.75X and a P/CF of 27.66X.

The Computer - Integrated Systems industry is in the top 18% 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.