Western Digital (WDC) Gains As Market Dips: What You Should Know
In the latest trading session, Western Digital (WDC) closed at $61.80, marking a +1.23% move from the previous day. This change outpaced the S&P 500's 0.24% loss on the day. At the same time, the Dow lost 0.3%, and the tech-heavy Nasdaq lost 0.58%.
Coming into today, shares of the maker of hard drives for businesses and personal computers had gained 14.24% in the past month. In that same time, the Computer and Technology sector gained 5.16%, while the S&P 500 gained 4.96%.
Investors will be hoping for strength from WDC as it approaches its next earnings release. In that report, analysts expect WDC to post earnings of $0.27 per share. This would mark a year-over-year decline of 91.12%. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $3.90 billion, down 22.39% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $3.04 per share and revenue of $16.56 billion, which would represent changes of -37.19% and -0.06%, respectively, from the prior year.
Any recent changes to analyst estimates for WDC should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Based on our research, we believe these estimate revisions are directly related to near-team stock moves. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection remained stagnant. WDC is holding a Zacks Rank of #1 (Strong Buy) right now.
Investors should also note WDC's current valuation metrics, including its Forward P/E ratio of 20.07. This represents a no noticeable deviation compared to its industry's average Forward P/E of 20.07.
Investors should also note that WDC has a PEG ratio of 10.04 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Computer- Storage Devices stocks are, on average, holding a PEG ratio of 3.85 based on yesterday's closing prices.
The Computer- Storage Devices industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 51, putting it in the top 20% 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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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.