Storage solution provider, Seagate Technology Public Limited Company (STX) brought technology to a new level with the launch of the slimmest external hard disk drive (HDD) — Seagate Seven — last week. Just 7mm in thickness, the drive can store 500 gigabyte (GB) of data.
The company stated despite the size of the device, structural integrity and rigidity has not been compromised. Encased in a steel body, Seagate Seven will be available across the United States by mid to late January for $99.99. The item is already available for pre-orders on Seagate.com and Amazon.com (AMZN).
Seagate is focusing on innovative new products. A few years back, the company added Samsung Electronics Co.’s HDD business gaining access to Samsung's NAND-type flash chips for its SSD products. The company, otherwise known for HDDs, also supplies solid state drives (SSDs) which are expected to experience high demand, going forward.
Apart from this, Seagate has been able to control costs and increase the sale of high-margin products. Moreover, the company is coming up with new products to attract customers and address other segments. Seagate also enjoys greater exposure to high-end corporate desktop and enterprise server markets than its rival, Western Digital Corporation.
Further, we believe the secular growth of digital data, modest growth in the total addressable market and higher demand for storage are expected to be beneficial for the company. Additionally, synergies from acquisitions and product innovations continue to be the positives.
Currently, Seagate carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
Other stocks in the Computer-Storage Device industry worth considering are Quantum Corporation (QTM) and Qumu Corporation (QUMU), both sporting a Zacks Rank #2.
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