Would You Still Hold Seagate Technology Stock If It Fell Another 30%?
Seagate Technology (STX) stock is down 5.8% in a day. The recent slide reflects renewed concerns around AI chip export uncertainty to China and notable insider selling, but sharp drops like this often raise a tougher question: is the weakness temporary, or a sign of deeper cracks in the story?
Before judging its downturn reslience, let’s look at where Seagate Technology stands today.
- Size: Seagate Technology is a $90 Bil company with $10 Bil in revenue currently trading at $418.63.
- Fundamentals: Last 12 month revenue growth of 25.2% and operating margin of 25.6%.
- Liquidity: Has Debt to Equity ratio of 0.05 and Cash to Assets ratio of 0.12
- Valuation: Seagate Technology stock is currently trading at P/E multiple of 45.9 and P/EBIT multiple of 36.6
- 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. For details, see Buy or Sell STX Stock
That brings us to the key consideration for investors worried about this fall: how resilient is STX stock if markets turn south? This is where our downturn resilience framework comes in. Suppose STX stock falls another 20-30% to $293 – 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. Below, we dive deeper into each such downturn.
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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 $446.57 on 29 January 2026 , and currently trades at $418.63
| STX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -58.2% | -25.4% |
| Time to Full Recovery | 936 days | 464 days |
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
| STX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -35.6% | -33.9% |
| Time to Full Recovery | 259 days | 148 days |
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
| STX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -41.8% | -19.8% |
| Time to Full Recovery | 395 days | 120 days |
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
| STX | S&P 500 | |
|---|---|---|
| % Change from Pre-Recession Peak | -89.1% | -56.8% |
| Time to Full Recovery | 1,181 days | 1,480 days |
Feeling jittery about STX stock? Consider portfolio approach.
Portfolios Beat Stock Picking
Individual stocks can soar or tank but one thing matters: staying invested. The right portfolio can help you stay invested, capture upside and mitigate the downside associated with any individual stock.
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.