Though still down over 40% from the highs posted last year, the stock has rallied huge off the lows printed in May. Seagate Technology PLC (NASDAQ: STX) designs, manufactures and sells electronic data storage products in the Asia Pacific, the Americas and EMEA countries.
The company provides hard disk drives, solid state hybrid drives, solid state drives, PCIe cards and serial advanced technology architecture controllers that are designed for enterprise servers and storage systems in mission critical and nearline applications, as well as for client compute applications comprising desktop and mobile computing.
One of Wall Street’s biggest activist investors, ValueAct Capital, recently became one of Seagate’s largest shareholders with a new 9.5 million share stake. ValueAct established its new position via a secondary block trade, and will gain a seat at board meetings as an observer. ValueAct Capital generally invests in out-of-favor companies and works with them to make changes and boost long-term shareholder value.
Seagate investors receive a huge 7.18% dividend, which many thought would be cut, but it has been held steady. Jefferies has a rating of Buy and a $38 price objective on the stock. The consensus target price $34.10, which is below where the stock closed most recently at $35.10.
This European telecom company tends to fly under investors’ radar and it makes very good sense now. Vodafone Group PLC (NASDAQ: VOD) has been scorched since the middle of May, in part because of the Brexit, and offers a solid entry point here. The company offers voice, messaging and data services across mobile and fixed networks; broadband and TV services; cloud and hosting, as well as internet protocol-virtual private network services; roaming services; and unified communications services.
It also provides M-Pesa, a mobile money transfer and payment service, and Vodafone One, an ultra-high-speed fixed broadband service with Ono Fibre, home landline, 4G mobile telephony and Vodafone TV.
In addition, Vodafone offers Internet of Things products, which includes communication between devices via mobile technologies; international voice transit and roaming; carrier services, such as fixed and mobile connectivity and other services; and smartphones and tablets. The company serves 462 million mobile, 13 million fixed broadband and 9.5 million TV customers. It sells its products primarily through branded stores, distribution partners and third party retailers.
Vodafone shareholders receive a 5.48% dividend. The $36.31 Merrill Lynch price target compares with the consensus estimate of $38.15, The shares closed most recently at $27.85.
All these companies trade well off of highs printed last year, and all have solid upside potential. These are more suited for aggressive growth accounts that can tolerate volatility.