Seagate stock (NASDAQ
NDAQ
: STX
STX
) currently trades at $64 per share, 18% below the level seen in March 2021, and it appears appropriately priced. STX stock was trading at around $71 in early June 2022, just before the Fed started increasing rates, and is now 10% below that level, compared to 19% gains for the S&P 500 during this period. This underperformance of Seagate stock can be attributed to declining revenues in recent quarters due to weak consumer demand and higher inflation.
Interestingly, STX stock has had a Sharpe Ratio of 0.3 since early 2017, which is lower than 0.6 for the S&P 500 Index over the same period. This compares with the Sharpe of 1.3 for the Trefis Reinforced Value portfolio. Sharpe is a measure of return per unit of risk, and high-performance portfolios can provide the best of both worlds.
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