Western Digital (WDC) closed the most recent trading day at $199.88, moving -8.89% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.34%. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw an increase of 0.16%.
The stock of maker of hard drives for businesses and personal computers has risen by 29.4% in the past month, leading the Computer and Technology sector's loss of 1% and the S&P 500's gain of 1.19%.
Investors will be eagerly watching for the performance of Western Digital in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $1.92, reflecting a 8.47% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.91 billion, indicating a 32% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $7.66 per share and a revenue of $11.67 billion, indicating changes of +55.38% and -12.14%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Western Digital. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. At present, Western Digital boasts a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Western Digital currently has a Forward P/E ratio of 28.65. Its industry sports an average Forward P/E of 21.13, so one might conclude that Western Digital is trading at a premium comparatively.
It's also important to note that WDC currently trades at a PEG ratio of 1.26. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Computer- Storage Devices industry stood at 1.9 at the close of the market yesterday.
The Computer- Storage Devices industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 21, positioning it in the top 9% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
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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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