Seagate Technology (STX) stock has been somewhat of a disappointment for investors since mid-June, but options traders believe the company’s upcoming earnings report on Oct. 27 could trigger a near-term rally. Consensus is for the data storage giant to record $7.17 per share of earnings (EPS) for its fiscal Q4, which would represent remarkable 185% year-over-year growth.
At the time of writing, Seagate stock is down more than 40% versus its year-to-date high.
Where Options Data Suggests Seagate Stock Is Headed
Options traders are convinced that STX’s earnings event on Tuesday will provide the evidence its stock price needs to push higher.
According to Barchart, the put-to-call ratio on contracts expiring at the end of next week is set at 0.55x as of writing, indicating a strong bullish skew. The upper price on those contracts sits at $673 currently, signaling potential upside of more than 4% in Seagate within days after the release of its quarterly results.
On the flip side, however, Barchart holds a “40% SELL” average opinion on STX shares, reinforcing that technical momentum remains against them heading into the earnings event.
Bank of America Sees Massive Upside in STX Shares
Ahead of the scheduled quarterly update, Bank of America Securities maintained a “Buy” rating on Seagate shares and raised its price objective to $1,200.
The investment firm remains fully convinced that STX will post a solid quarter next week, citing hard disk drive spot prices running “well above contracted rates” as evidence of a supply-demand imbalance. BofA’s upwardly revised target suggests potential upside of nearly 90% over the next few months.
Seagate also has a history of closing each of the final three months of a calendar year in green, a seasonal pattern that makes it even more attractive for the near term.
What’s the Consensus Rating on Seagate Technology?
Crucially, Bank of America isn’t the only Wall Street firm recommending sticking with STX stock heading into 2027.
According to Barchart, the consensus rating on Seagate Technology sits at “Strong Buy.” Analysts’ mean price target is currently set at $1,143, indicating potential for an explosive rally into the coming year.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.