The Computer Storage Device industry is red hot, according to the latest Zacks Industry Ranks. This 11-company strong group scored a #29 out of 265 rank, up +18 spots in recent weeks. Covering analysts granted 13 earnings-per-share upgrades and just two downgrades. The average size of EPS revisions was 13%.
Bulls have a compelling long-term growth case. Underlying EPS fundamentals for consistent computer storage growth remain excellent. Information storage needs have doubled roughly every three years. A study in Science estimated the world’s technological capacity to store information in analog and digital devices grew from less than three (optimally compressed) exabytes in 1986, to 295 (optimally compressed) exabytes in 2007.
Imagine where that is now, and where it is going?
In 2014, technology consultant International Data Corporation (IDC) said that the amount of data would grow to 2.16 zettabytes worldwide. By 2016, it will have grown to 3.77 zettabytes.
Moving from exabytes to zettabytes? As remarkable as we are at creating data, storage technology has kept up.
Data storage is the fastest growing semiconductor technology. Tape storage, hard disk drives, and solid-state storage have doubled about every 12 to 18 months.
According to Techopedia, storage devices form one of the core components in any computing device. Computer storage devices store virtually all the data and applications on a computer, except hardware/firmware.
Here are the top three Zacks ranked computer storage device companies, in order of market capitalization. Surprisingly, the share valuation story looks solid across this niche (see “Hoarding data” below). This is a key metric -- advocating for joining the bullish ranks now.
- Seagate Technology PLC (STX): This is a Zacks #2 Rank (BUY) stock with a Zacks VGM (value, growth, momentum) score of B.
- Super Micro Computer (SMCI): This is a Zacks #2 Rank (BUY) stock with a Zacks VGM score of B.
- Datalink (DTLK): This is a Zacks #2 Rank (BUY) stock with a Zacks VGM score of A.