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need to know
Coca-Cola revenue beats, but profit falls short
Wendy's profit, revenue beats expectations
Sears warns on sales, to speed up closures
Head-on train crash kills at least 9 in Germany
Greek protests escalate over refugee camps
Film flops hurt 21st Century Fox outlook
Crackdown on college financial-aid cheats


U.S. ECONOMY
Wholesale inventories fall for third month in row
NFIB survey hints wage gains are fleeting
Job openings are second highest on record

White House forecasts decade-best economic growth
Obama proposes $4.1 trillion federal budget

Five questions that Janet Yellen must answer
Yellen may say goal is not to slow the economy
Fed: Too white, too male, too many bankers?
Expansion won’t die of old age: S.F. Fed study

Deutsche Bank co-CEO says bank is ‘rock solid’
Deutsche Bank shares fall again in bank rout

Why the selloff in European bank stocks is ominous
Bank stocks have taken enough: analyst

IEA warns oil surplus will be worse than expected
IEA warns oil surplus will be bigger than expected
Oil rises, shrugging off IEA report

Oil industry woes grow as storage levels hit ‘critical level’
Oil woes grow as storage hits ‘critical’ level

99 Cent Gas May Be on Its Way
99-cents-a-gallon gas may be on its way: 24/7 Wall St.

Is the gold rally the real deal or ‘fool’s gold’?
Teen can keep $20,000 gold bar found in lake
Gold one of Wall Street’s best bets early in 2016

Nikkei skids 5% as 10-year bond yield moves negative
Japan minister warns against yen’s ‘rough’ rise

Convertible bonds are alluring as stocks slip
Convertible bonds are alluring as stocks fall


Record number of Americans give up citizenship

Google CEO Sundar Pichai gets $199 million in stock

Europe’s battles: migrants, ‘Brexit’ and ECB
German output, exports drop in December
Roubini: Welcome to the New Abnormal


Resist the urge to buy this stock pullback: J.P. Morgan

Yelp’s billion-dollar path hits a detour
Yelp posts earnings early, CFO to step down


Tesla downward revision is among the biggest
Tesla earnings: Model 3, Model X in focus

Computer virus wants to remind you to have a nice day
Justice Department data exposed in breach

23 stocks they’re throwing out with the bathwater

Chipotle wants to give you a burrito — how to get it
What did Chipotle workers do today?

This has been the No. 1 car in America for decades
Cars sink through ice at winter festival
How far can you go on $50 in gas?



/conga/frontpage.html 367451

Markets »

48.62MDow Volume:
Avg Vol: 129.39M
Unchanged
139
Decliners
4359
Advancers
1792
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 15,956 -71 0.44%
Nasdaq
/quotes/zigman/12633936/realtime 4,268 -16 0.37%
S&P 500
/quotes/zigman/3870025/realtime 1,846 -7 0.39%
GlobalDow
/quotes/zigman/629063/realtime 2,081 -23 1.08%
Gold
/quotes/zigman/33772884/delayed 1,196 -2 0.18%
Oil
/quotes/zigman/2260836/delayed 29.39 -0.30 1.01%
FTSE 100
/quotes/zigman/3173262/delayed 5,639 -50 0.88%
DAX
/quotes/zigman/2380246/delayed 8,879 -100 1.11%
CAC 40
/quotes/zigman/3173214/delayed 3,998 -69 1.69%
FTSE MIB
/quotes/zigman/1482176/delayed 15,913 -528 3.21%
IBEX 35
/quotes/zigman/2759620/delayed 7,928 -195 2.39%
Stoxx 600
/quotes/zigman/2380150/delayed 309 -5 1.61%
Asia Dow
/quotes/zigman/6959860/realtime 2,470 -45 1.78%
Nikkei 225
/quotes/zigman/5986735/delayed 16,085 -919 5.40%
Hang Seng
/quotes/zigman/2622475/delayed 19,288 +105 0.55%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 24,021 -266 1.10%
Singapore
/quotes/zigman/1709939/delayed 2,623 +65 2.53%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.01 1.12%
Yen
/quotes/zigman/16008150/realtime/sampled 114.87 -0.98 0.85%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 +0.01 0.41%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 0.00 0.14%
DXY Index
/quotes/zigman/1652083/delayed 95.81 -0.86 0.89%
WSJ $ Idx
/quotes/zigman/41508961/realtime 89.12 -0.51 0.57%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.73 -0.02 0.89%
German 10y
/quotes/zigman/15866409/realtime 0.24 +0.02 7.68%
Italy 10yr
/quotes/zigman/15866497/realtime 1.69 -0.01 0.78%
Spain 10yr
/quotes/zigman/15866444/realtime 1.78 +0.03 1.43%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.41 0.00 0.07%
Japan 10yr
/quotes/zigman/15866525/realtime -0.02 -0.06 163.32%
Crude Oil
/quotes/zigman/2260836/delayed 29 0 1.01%
Gold
/quotes/zigman/33772884/delayed 1,196 -2 0.18%
Corn
/quotes/zigman/25518691/delayed 361 -2 0.48%
DJIA F
/quotes/zigman/48241424/delayed 15,907 -81 0.51%
S&P F
/quotes/zigman/43106711/delayed 1,846 -6 0.34%
Silver
/quotes/zigman/32655632/delayed 15 +0 0.03%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 100.59 0.84 0.84%
AAPL /quotes/zigman/68270/composite 94.76 -0.25 -0.26%
GOOG /quotes/zigman/59527964/composite 686.85 4.11 0.60%
BAC /quotes/zigman/190927/composite 12.26 -0.01 -0.08%
C /quotes/zigman/5065548/composite 37.52 -0.30 -0.78%
F /quotes/zigman/264304/composite 11.44 -0.15 -1.29%
T /quotes/zigman/398198/composite 36.42 -0.69 -1.86%
BP /quotes/zigman/247026/composite 29.06 -0.86 -2.88%
GE /quotes/zigman/227468/composite 28.15 -0.02 -0.07%
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Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.88% 11.62%
Business 13.12% 13.11% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.30% 14.12%
Airline 15.17% 15.16% 15.10%
Cash Back 15.26% 15.23% 15.27%
Reward 15.28% 15.25% 15.14%
Instant Approval 18.21% 18.18% 18.00%
Bad Credit 22.88% 22.88% 22.73%
Source:CreditCards.com

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Why iPhone Fans Should Buy Seagate Shares

Investors who are contemplating the iPhone sales surge that will kick off this month as the new model goes on sale might feel compelled to buy Apple (AAPL) stock.

They could do worse; it sells for 16 times projected earnings for Apple’s fiscal year ending this month, versus 14 times for the broad market. But with some slight math contortions — using next year’s higher, projected earnings and subtracting the company’s cash and investments from its stock price — the valuation drops to 11 times earnings.

Then again, Apple is already the largest company in America by stock market value, so don’t expect its shares to double soon.

As an alternative, there’s always a one-off iPhone stock, like Qualcomm, maker of the chips that power the high-speed data connections smartphones rely upon. But it sells for 18 times earnings.

Here’s a two-off idea: Seagate Technology (STX). It makes hard drives that store data in personal computers and data centers.

Smartphones and tablet computers dented sales of personal computers, and investors view that as a troubling sign for hard-drive companies like Seagate. Tablet devices use speedy “flash” memory, and they don’t need much of it, because users increasingly store their videos, photos and other large files online using “cloud” services.

But those files must be stored somewhere, and that somewhere is the vast data centers like the kind being built by Apple, Amazon (AMZN) and Hewlett-Packard (HPQ). Data centers have endless demand for hard drives, which hold a sizable lead over flash drives (which Seagate also sells) when it comes to storage capacity and reliability.

In 2010, 62% of data storage was shipped for individual use, but by 2020, Seagate reckons 61% will be used for cloud computing.

Seagate shares sell for just 4.5 times trailing earnings, and its earnings per share are expected by Wall Street to increase 10% over the next four quarters. The ultralow valuation reflects a belief among investors that Seagate is a PC-era stock in a post-PC world. But management last quarter pointed to “exceptional growth” from cloud-computing customers.

The stock gained 90% this year, topping Apple’s 69% rise. Part of that climb is owed to an industry recovery from flooding in Thailand last year that closed hard-drive factories and left supplies short. Part may also be owed to Seagate gradually proving that it can profit from the rise of iPhones and similar devices rather than fall victim.

At its current stock price, Seagate doesn’t need to provide world-beating growth to offer handsome returns for investors. Last quarter, the company spent a whopping $1.2 billion to repurchase its shares — that’s 10% of its current stock market value. And Seagate exited the quarter with $2.2 billion in cash and equivalents, up from $2 billion the prior quarter.

Share repurchases reduce a company’s share count and can increase the value of its remaining shares, but they work best in cases where shares are cheap. Seagate looks to be getting an excellent deal on its repurchases, and the pace of its program is as aggressive as they come.

The stock also carries a dividend yield of 4.3%, more than double the S&P 500 index’s yield.

Comments

We welcome thoughtful comments from readers. Please comply with our guidelines. Our blogs do not require the use of your real name.

Comments (4 of 4)

View all Comments »
    • True, Bob, SSDs are the future, but not for data centers. They’re much too costly and their speed advantage drops when used in large RAIDs. And, on top of that, their shelf life is typically much shorter. STX is a good bet.

    • From the article:

      Data centers have endless demand for hard drives, which hold a sizable lead over flash drives (which Seagate also sells) when it comes to storage capacity and reliability.

    • I disagree, the life of hard drives is over, SSD is the future.
      Seagate days are numbered.

    • I bought STX last October at $10. After the stock price doubled I sold off half, basically getting my current shares for free. The price has continued to climb, and I also get a 10% dividend yield based on my cost basis.

About Real-Time Advice

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MarketWatch - Stock Market Quotes, Business News, Financial News
Bulletin
Investor Alert

New York Markets Close in:

need to know
Coca-Cola revenue beats, but profit falls short
Wendy's profit, revenue beats expectations
Sears warns on sales, to speed up closures
Head-on train crash kills at least 9 in Germany
Greek protests escalate over refugee camps
Film flops hurt 21st Century Fox outlook
Crackdown on college financial-aid cheats


U.S. ECONOMY
Wholesale inventories fall for third month in row
NFIB survey hints wage gains are fleeting
Job openings are second highest on record

White House forecasts decade-best economic growth
Obama proposes $4.1 trillion federal budget

Five questions that Janet Yellen must answer
Yellen may say goal is not to slow the economy
Fed: Too white, too male, too many bankers?
Expansion won’t die of old age: S.F. Fed study

Deutsche Bank co-CEO says bank is ‘rock solid’
Deutsche Bank shares fall again in bank rout

Why the selloff in European bank stocks is ominous
Bank stocks have taken enough: analyst

IEA warns oil surplus will be worse than expected
IEA warns oil surplus will be bigger than expected
Oil rises, shrugging off IEA report

Oil industry woes grow as storage levels hit ‘critical level’
Oil woes grow as storage hits ‘critical’ level

99 Cent Gas May Be on Its Way
99-cents-a-gallon gas may be on its way: 24/7 Wall St.

Is the gold rally the real deal or ‘fool’s gold’?
Teen can keep $20,000 gold bar found in lake
Gold one of Wall Street’s best bets early in 2016

Nikkei skids 5% as 10-year bond yield moves negative
Japan minister warns against yen’s ‘rough’ rise

Convertible bonds are alluring as stocks slip
Convertible bonds are alluring as stocks fall


Record number of Americans give up citizenship

Google CEO Sundar Pichai gets $199 million in stock

Europe’s battles: migrants, ‘Brexit’ and ECB
German output, exports drop in December
Roubini: Welcome to the New Abnormal


Resist the urge to buy this stock pullback: J.P. Morgan

Yelp’s billion-dollar path hits a detour
Yelp posts earnings early, CFO to step down


Tesla downward revision is among the biggest
Tesla earnings: Model 3, Model X in focus

Computer virus wants to remind you to have a nice day
Justice Department data exposed in breach

23 stocks they’re throwing out with the bathwater

Chipotle wants to give you a burrito — how to get it
What did Chipotle workers do today?

This has been the No. 1 car in America for decades
Cars sink through ice at winter festival
How far can you go on $50 in gas?



/conga/frontpage.html 367451

Markets »

48.70MDow Volume:
Avg Vol: 129.39M
Unchanged
140
Decliners
4358
Advancers
1792
Price Chg %Chg 1 Day
Range: 1 Day
  • 1 Day
  • 5 Days
  • 1 Month
  • 3 Months
  • 6 Months
  • 1 Year
  • 2 Years
Dow
/quotes/zigman/627449/realtime 15,961 -66 0.41%
Nasdaq
/quotes/zigman/12633936/realtime 4,270 -14 0.33%
S&P 500
/quotes/zigman/3870025/realtime 1,847 -7 0.36%
GlobalDow
/quotes/zigman/629063/realtime 2,081 -22 1.06%
Gold
/quotes/zigman/33772884/delayed 1,195 -3 0.21%
Oil
/quotes/zigman/2260836/delayed 29.42 -0.27 0.91%
FTSE 100
/quotes/zigman/3173262/delayed 5,639 -50 0.88%
DAX
/quotes/zigman/2380246/delayed 8,879 -100 1.11%
CAC 40
/quotes/zigman/3173214/delayed 3,998 -69 1.69%
FTSE MIB
/quotes/zigman/1482176/delayed 15,913 -528 3.21%
IBEX 35
/quotes/zigman/2759620/delayed 7,928 -195 2.39%
Stoxx 600
/quotes/zigman/2380150/delayed 309 -5 1.61%
Asia Dow
/quotes/zigman/6959860/realtime 2,470 -45 1.78%
Nikkei 225
/quotes/zigman/5986735/delayed 16,085 -919 5.40%
Hang Seng
/quotes/zigman/2622475/delayed 19,288 +105 0.55%
Shanghai
/quotes/zigman/1859015/delayed 2,763 -18 0.63%
Sensex
/quotes/zigman/1652085/delayed 24,021 -266 1.10%
Singapore
/quotes/zigman/1709939/delayed 2,623 +65 2.53%
Euro
/quotes/zigman/16008136/realtime/sampled 1.13 +0.01 1.13%
Yen
/quotes/zigman/16008150/realtime/sampled 114.86 -0.99 0.86%
Pound
/quotes/zigman/16008140/realtime/sampled 1.45 +0.01 0.42%
Australia$
/quotes/zigman/16008115/realtime/sampled 0.71 0.00 0.11%
DXY Index
/quotes/zigman/1652083/delayed 95.83 -0.85 0.88%
WSJ $ Idx
/quotes/zigman/41508961/realtime 89.11 -0.53 0.59%
U.S. 10yr
/quotes/zigman/15866666/realtime 1.73 -0.02 0.98%
German 10y
/quotes/zigman/15866409/realtime 0.24 +0.02 8.00%
Italy 10yr
/quotes/zigman/15866497/realtime 1.69 -0.01 0.78%
Spain 10yr
/quotes/zigman/15866444/realtime 1.78 +0.03 1.43%
U.K. 10yr
/quotes/zigman/15866328/realtime 1.41 0.00 0.07%
Japan 10yr
/quotes/zigman/15866525/realtime -0.02 -0.06 163.32%
Crude Oil
/quotes/zigman/2260836/delayed 29 0 0.91%
Gold
/quotes/zigman/33772884/delayed 1,195 -3 0.21%
Corn
/quotes/zigman/25518691/delayed 361 -2 0.48%
DJIA F
/quotes/zigman/48241424/delayed 15,908 -80 0.50%
S&P F
/quotes/zigman/43106711/delayed 1,847 -6 0.30%
Silver
/quotes/zigman/32655632/delayed 15 0 0.01%

Quotes

Symbol Price Change % Change
FB /quotes/zigman/9962609/composite 100.53 0.78 0.78%
AAPL /quotes/zigman/68270/composite 94.74 -0.27 -0.28%
GOOG /quotes/zigman/59527964/composite 686.65 3.91 0.57%
BAC /quotes/zigman/190927/composite 12.26 -0.02 -0.12%
C /quotes/zigman/5065548/composite 37.52 -0.29 -0.77%
F /quotes/zigman/264304/composite 11.44 -0.15 -1.30%
T /quotes/zigman/398198/composite 36.41 -0.70 -1.89%
BP /quotes/zigman/247026/composite 29.04 -0.88 -2.94%
GE /quotes/zigman/227468/composite 28.14 -0.03 -0.11%
Visit the quote page and your most recently viewed stocks will automatically be displayed here.
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Rates »

5 yr CD
1.3%
2 yr CD
0.7%
1 yr CD
0.5%
MMA $10K+
0.2%
MMA $50K+
0.4%

National averages from Bankrate.com

You Don’t Need Another Credit Card, You Need A Better One.
Avg. APR Last Week 6 Months
Low Interest 11.96% 11.88% 11.62%
Business 13.12% 13.11% 12.85%
Student 13.42% 13.42% 13.14%
Balance Transfer 14.35% 14.30% 14.12%
Airline 15.17% 15.16% 15.10%
Cash Back 15.26% 15.23% 15.27%
Reward 15.28% 15.25% 15.14%
Instant Approval 18.21% 18.18% 18.00%
Bad Credit 22.88% 22.88% 22.73%
Source:CreditCards.com

SPONSORED SECTIONS

Trending Tickers
  • /quotes/zigman/245568/composite DIS-1.02%
  • /quotes/zigman/398198/composite T-1.87%
  • /quotes/zigman/53534892/composite GLBL-8.05%
  • /quotes/zigman/66695/composite VDSI-5.38%
  • /quotes/zigman/252613/composite TK-13.24%
X
Powered by StockTwits
Link to MarketWatch's Slice.

As of July 2, 2013, the SmartMoney content you loved now lives on MarketWatch.

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  • Personalized news and quote email alerts
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