In the latest trading session, Western Digital (WDC) closed at $129.41, marking a +2.94% move from the previous day. The stock's performance was ahead of the S&P 500's daily gain of 0.79%. On the other hand, the Dow registered a gain of 1.01%, and the technology-centric Nasdaq increased by 1.15%.
The stock of maker of hard drives for businesses and personal computers has risen by 17.26% in the past month, leading the Computer and Technology sector's gain of 1.2% and the S&P 500's gain of 1.27%.
The investment community will be closely monitoring the performance of Western Digital in its forthcoming earnings report. The company is scheduled to release its earnings on October 30, 2025. In that report, analysts expect Western Digital to post earnings of $1.59 per share. This would mark a year-over-year decline of 10.67%. At the same time, our most recent consensus estimate is projecting a revenue of $2.72 billion, reflecting a 33.54% fall from the equivalent quarter last year.
WDC's full-year Zacks Consensus Estimates are calling for earnings of $6.64 per share and revenue of $11.09 billion. These results would represent year-over-year changes of +34.69% and -16.47%, respectively.
Investors might also notice recent changes to analyst estimates for Western Digital. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 1.74% higher within the past month. Western Digital presently features a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Western Digital currently has a Forward P/E ratio of 18.94. This expresses a premium compared to the average Forward P/E of 18.88 of its industry.
We can additionally observe that WDC currently boasts a PEG ratio of 0.95. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As of the close of trade yesterday, the Computer- Storage Devices industry held an average PEG ratio of 2.07.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 62, finds itself in the top 26% echelons 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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Western Digital Corporation (WDC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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