Technology Hardware and Storage Subsector Shares Underperform
Analyzing XLK: Why Did It Fall by 2.61% Last Week?
Trailing five day returns
Firms in the Technology Hardware and Storage subsector include heavyweights like Apple (AAPL), SanDisk (SNDK), Seagate Technology (STX), Western Digital (WDC), NetApp (NTAP), EMC (EMC), and Hewlett-Packard (HPQ). They’ve generated investor returns of -0.59%, -10.69%, -6.07%, -5.49%, -3.28%, -0.59%, and 0.13%, respectively, in the trailing five day period.
Hewlett-Packard was the only stock that produced positive returns during this period. In contrast, Apple was the only stock that generated positive returns of 14.15% since January 2015. This indicates that stocks in this industry are going through tough times. One of the main reasons for the stocks’ poor performance in this subsector is the global fall in the sale of personal computers. This has directly or indirectly impacted these firms in the last 12–18 months.
Analyst recommendations
Out of the 265 analyst recommendations covering seven stocks in this sub-industry in the Technology Select Sector ETF (XLK), 143 analysts have a “buy” recommendation, 15 have a “hold” recommendation, and 107 have a “sell” recommendation.
SanDisk
SanDisk’s closing price on July 6, 2015, was $55.48. Currently, it’s trading 22.19% below its 100-day moving average of $71.30, 16.02% below its 50-day moving average of $66.06, and 13.08% below its 20-day moving average of $63.82.
Out of the 36 analysts covering the stock, 14 have a “buy” recommendation, three have a “sell” recommendation, and 19 have a “hold” recommendation with a median stock target of $74. SanDisk is trading at a discount of 25%. It’s an attractive buy at the current levels.
Seagate Technology
Seagate Technology’s closing price on July 6, 2015, was $47.02. Currently, it’s trading 15.84% below its 100-day moving average of $55.87, 14.24% below its 50-day moving average of $54.83, and 9.56% below its 20-day moving average of $51.99.
Out of the 29 analysts covering the stock, 15 have a “buy” recommendation, two have a “sell” recommendation, and 12 have a “hold” recommendation with a median stock target of $61. Seagate is trading at a discount of 23%. It’s an attractive buy at the current levels.
Last week, the price of these stocks was negatively impacted. Micron Technology missed its 3Q15 estimates and offered light 4Q15 guidance due to weak PC market trends.
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