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Western Digital (WDC) Gains As Market Dips: What You Should Know

Zacks Equity Research
·3-min read

Western Digital (WDC) closed the most recent trading day at $47.58, moving +1.08% from the previous trading session. This change outpaced the S&P 500's 0.3% loss on the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 0.11%.

Heading into today, shares of the maker of hard drives for businesses and personal computers had lost 24.39% over the past month, lagging the Computer and Technology sector's gain of 3.24% and the S&P 500's loss of 0.62% in that time.

Western Digital will be looking to display strength as it nears its next earnings release. On that day, Western Digital is projected to report earnings of $1.76 per share, which would represent a year-over-year decline of 18.52%. Our most recent consensus estimate is calling for quarterly revenue of $4.61 billion, down 6.21% from the year-ago period.

WDC's full-year Zacks Consensus Estimates are calling for earnings of $8.20 per share and revenue of $18.88 billion. These results would represent year-over-year changes of +80.22% and +11.57%, respectively.

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Investors might also notice recent changes to analyst estimates for Western Digital. These revisions help to show the ever-changing nature of near-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. Western Digital currently has a Zacks Rank of #3 (Hold).

Investors should also note Western Digital's current valuation metrics, including its Forward P/E ratio of 5.74. This valuation marks a discount compared to its industry's average Forward P/E of 12.23.

The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 92, putting it in the top 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.


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