Western Digital (WDC) closed at $65.93 in the latest trading session, marking a +1.1% move from the prior day. This change outpaced the S&P 500’s 0.64% gain on the day. At the same time, the Dow added 0.68%, and the tech-heavy Nasdaq gained 0.46%.
Prior to today’s trading, shares of the maker of hard drives for businesses and personal computers had gained 13.37% over the past month. This has outpaced the Computer and Technology sector’s gain of 1.46% and the S&P 500’s gain of 4.56% in that time.
Wall Street will be looking for positivity from Western Digital as it approaches its next earnings report date. In that report, analysts expect Western Digital to post earnings of $2.47 per share. This would mark year-over-year growth of 257.97%. Meanwhile, our latest consensus estimate is calling for revenue of $4.8 billion, up 21.79% from the prior-year quarter.
WDC’s full-year Zacks Consensus Estimates are calling for earnings of $8.72 per share and revenue of $19.58 billion. These results would represent year-over-year changes of +91.65% and +15.73%, respectively.
Any recent changes to analyst estimates for Western Digital should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company’s business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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. The Zacks Consensus EPS estimate remained stagnant within the past month. Western Digital currently has a Zacks Rank of #3 (Hold).
Digging into valuation, Western Digital currently has a Forward P/E ratio of 7.48. Its industry sports an average Forward P/E of 19.04, so we one might conclude that Western Digital is trading at a discount comparatively.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 114, putting it in the top 45% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our 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.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
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