Would You Still Hold Seagate Technology Stock If It Fell 30%?

Seagate Technology (STX) stock is up 33.8% in 21 trading days. The rally reflects strong AI-driven demand for mass-capacity storage and HAMR tech, but big moves like this often invite a tougher question: is the stock truly resilient when markets reverse?

Before judging its downturn reslience, let’s look at where Seagate Technology stands today.

• Size: Seagate Technology is a $61 Bil company with $9.1 Bil in revenue currently trading at $283.26.
• Fundamentals: Last 12 month revenue growth of 38.9% and operating margin of 21.1%.
• Liquidity: Has Debt to Equity ratio of 0.08 and Cash to Assets ratio of 0.11
• Valuation: Seagate Technology stock is currently trading at P/E multiple of 41.5 and P/EBIT multiple of 33.2
• Has returned (median) 65.7% within a year following sharp dips since 2010. See STX Dip Buy Analysis.

These metrics point to a Strong operational performance, alongside Very High valuation – making the stock Relatively Expensive.

That brings us to the key consideration for investors chasing this rally: how resilient is STX stock if markets turn south? While we like to ride the momentum when the fundamentals check out (see Buy or Sell STX Stock) – we stay wary of potential bull traps.

This is where our downturn resilience framework comes in. Suppose STX stock falls 20-30% to $198 – can investors comfortably hold on? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns, based on (a) how much the stock fell and, (b) how quickly it recovered. Don’t get too attached to STX stock, even if you love it. Stocks crash. High Quality Portfolio lets you navigate that risk.

Below are the details, but before that, as a quick background: STX provides data storage technology and solutions worldwide, offering hard disk drives, solid state drives, and advanced storage interfaces like SATA, SCSI, and NVMe.

2022 Inflation Shock

• STX stock fell 58.2% from a high of $116.02 on 4 January 2022 to $48.49 on 3 November 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 27 May 2025
• Since then, the stock increased to a high of $293.99 on 10 November 2025 , and currently trades at $283.26

 
2020 Covid Pandemic

• STX stock fell 35.6% from a high of $63.23 on 24 January 2020 to $40.73 on 20 March 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 4 December 2020

 
2018 Correction

• STX stock fell 41.8% from a high of $62.11 on 18 April 2018 to $36.13 on 24 December 2018 vs. a peak-to-trough decline of 19.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 23 January 2020

 
2008 Global Financial Crisis

• STX stock fell 89.1% from a high of $28.60 on 2 November 2007 to $3.11 on 23 January 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 18 April 2012

 
It is a good thing to keep in mind how low STX could go during a downturn. And you should also check how the stock fared when compared with the Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.