Seagate Technology Holdings PLC (STX) was the top gainer in the S&P 500 on Thursday, up over 11%.
The maker of computer memory reported its fiscal second quarter 2023 earnings after market close on Wednesday, beating analyst projections. Seagate is up 11.22% as of 4:00 PM ET.
Seagate reported an adjusted (non-GAAP) profit of $0.16 per share on sales of $1.89 billion, outpacing analyst expectations of $0.10 per share in earnings and $1.83 billion in sales. However, the reported GAAP figure for the quarter was a loss of $0.16 per share.
Seagate reported positive free cash flow of $172 million during the second quarter, bringing its first half fiscal year 2023 total to $284 million in free cash flow. This is a decline from a year prior, when the company reported $805 million in positive free cash flow.
Seagate is weighted just 0.14% in a market cap-weighted S&P 500 tech sector ETF. For investors who would like more balanced exposure to the tech sector, the Invesco S&P 500 Equal Weight Technology ETF (RYT) gives the security a weight of 1.45%.
RYT is based on the S&P 500 Equal Weight Information Technology Index. Component companies in the index are given equal allocations at each quarterly rebalance. This results in exposure that is considerably more balanced than other alternatives, and a methodology that some investors believe will add value over the long haul. An equal-weight approach is particularly impactful in the top-heavy tech sector, which is dominated by just a handful of names.
The S&P 500 Equal Weight Information Technology Index covers the following industries: internet equipment, computers and peripherals, electronic equipment, office electronics and instruments, semiconductor equipment and products, diversified telecommunication services, and wireless telecommunication services.
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