Western Digital Corporation (NASDAQ:WDC) shares are in the spotlight Thursday ahead of the company’s fiscal second-quarter earnings report after the market closes.
Earnings Expectations In Focus
Western Digital heads into its earnings report Thursday as investor focus on the data storage sector has intensified following strong second-quarter results from Seagate. Analysts are forecasting earnings per share of $1.92 and revenue of $2.92 billion.
In the most recent quarter, Western Digital delivered EPS of $1.78 against an estimate of $1.58, while revenue came in at $2.82 billion, moderately above the $2.73 billion estimate.
Investors should keep an eye on Western Digital’s gross margin trends, which have been improving and are crucial for profitability in a competitive landscape. Additionally, watch for any updates on data center demand, as this sector has been a significant driver of growth, with expectations for continued expansion in cloud storage solutions.
Analyst Changes: Ahead of the earnings report, multiple analysts issued price target adjustments.
- Mizuho analyst Vijay Rakesh maintained an Outperform rating on Western Digital and raised the price target from $240 to $265.
- Morgan Stanley analyst Erik Woodring maintained an Overweight rating on Western Digital and raised the price target from $228 to $260.
- UBS analyst Timothy Arcuri maintained a Neutral rating on Western Digital and raised the price target from $145 to $230.
- Citigroup analyst Asiya Merchant maintained a Buy rating on Western Digital and raised the price target from $200 to $280.
- B of A Securities analyst Wamsi Mohan maintained a Buy rating on Western Digital and raised the price target from $197 to $257.
- Rosenblatt analyst Kevin Cassidy maintained a Buy rating on Western Digital and raised the price target from $165 to $270.
WDC Trades Above Key Levels
Currently, Western Digital is trading 29.5% above its 20-day simple moving average (SMA) and 81.7% above its 100-day SMA, indicating strong short-term and long-term bullish momentum. Shares have increased 349.82% over the past 12 months and are currently positioned closer to their 52-week highs than lows, reflecting a strong upward trend.
The RSI is at 78.66, which is considered overbought, suggesting that the stock may be due for a pullback. Meanwhile, the MACD is above its signal line, indicating bullish momentum, which supports the current price action.
The combination of an overbought RSI and a bullish MACD suggests that while the stock is experiencing strong upward momentum, traders should be cautious of potential corrections in the near term.
Benzinga Edge Rankings
Below is the Benzinga Edge scorecard for Western Digital, highlighting its strengths and weaknesses compared to the broader market:
- Value Rank: 4.47 — Trading at a steep premium relative to peers.
- Quality Rank: 96.99 — Indicates a strong balance sheet and operational efficiency.
- Momentum Rank: 99.17 — Stock is outperforming the broader market.
The Verdict: Western Digital’s Benzinga Edge signal reveals a classic ‘High-Flyer’ setup. While the Momentum (99.17) confirms the strong trend, the low Value (4.47) score warns that the stock is priced for perfection—investors should ride the trend but use tight stop-losses.
Western Digital Shares Trade Flat
WDC Price Action: At the time of writing, Western Digital shares are trading 3.47% lower at $270.13, according to data from Benzinga Pro.
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